3 Tucker 1 2 Example 2 Consider a linear economic supply

Last updated: 9/8/2023

3 Tucker 1 2 Example 2 Consider a linear economic supply demand model described by Industrial Demand Consumer Const Trans Steel Demand 0 23 0 2 0 2r3 0 1 0 24 Total Demand Ener Energy d 0 4x Construction d 0 3x Transportation ds 0 1 Steel da I 0 2 0 3x2 0 122 0 122 0 123 100 50 100 0 Use an iterative procedure to estimate production supply levels of all four commodities that perfectly balance supply and demand Begin with supply values of 300 units of energy 250 units of construction 160 units of transportation and 40 units of steel Compute the overall demand given these values then use these results as new supply values Repeat for 3 iterations Make a plot of both the maximum absolute difference and the maximum relative difference from one step the next with number of steps on the x axis