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The following is the input-output tableau for two sectors of a certain economy: SOURCE TOTAL OUTPUT USER SERVICES AGRICULTUR E SERVICES 10,000 transactions 16,000 transactions

The following is the input-output tableau for two sectors of a certain economy:

SOURCE TOTAL OUTPUT

USER

SERVICES AGRICULTUR E

SERVICES 10,000 transactions 16,000 transactions 50,000 transactions

AGRICULTVR E 1,000 tonnes 500 tonnes 4,000 tonnes

Additional Information:

A single transaction of output of the services sector is worth Kshs. 100,000 A single tonne of output of the agriculture sector is worth Kshs. 2,000,000 Required: Establish the technological matrix Suppose in a given period the final demand for output is 24,000 transactions and 2,500 tonnes for services and agriculture sectors respectively, what should be the total output from each sector? (2 Marks) Hi) Suppose in another period the final demand for output is 30,000 transactions and 2,000 tonnes for services and agriculture sectors respectively, what should be the total output from each sector? (5 Marks)

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