Tutorial 3

1 QUESTION 1
H

2 QUESTION 2
Calculate the output matrix (X ) for the following matrix of technical coefficients ( A) and vector of
final demand (B) using matrix inversion.

[ ]
0.45 0.06 0.34
A= 0.03 0.33 0.34
0.36 0.35 0.19

[ ]
700
B= 20
100

3 QUESTION 3
FPT (Pty) Ltd enters into an agreement with Aspect Gaming to optimize production in the
gaming industry. Initially it is known that:

 FPT (Pty) Ltd requires 40% of its own resources and has an external demand of 600
 Aspect Gaming requires 50% of its own resources and has an external demand of
900
Therefore, the matrix of technical coefficients looks as follows:

A=
[ 0β, 4 α
0,5 ]
We also know that:
5 4 3 2
8 β + 24 β +24 β +24 β +16 β
α=
( 3 β +6 ) ( β 3+ β2 + β +1 )
The trade agreement between the two companies is characterised by the following
characteristic equation:
2
c −1 , 1 c+0 ,24
Where c is the eigenvalue.
Using the above information, answer the following questions:
 a) Calculate and interpret the values of α and β .

b) Calculate the output matrix X using Matrix Inversion (you may assume the values
of α and β if you cannot calculate these values. Ensure that the assumed values
do not produce a singular matrix).

4 QUESTION 4
Create a solver in Excel which calculates the output matrix for a 2 ×2 Leontief System using the
Characteristic Matrix approach. Check your answer question 3 using the solver.