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I.
Set up a “Production Matrix” for total output of water industry ($ value) and total output of electricity ($ value).

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II.
Write a “Consumption Matrix” based on the following assumptions:
- to produce $1.00 water takes $0.01 of water and $0.15 of electricity
- to produce $1.00 electricity - $0.21 of water and $0.05 of electricity

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III.
Write matrix equation representing total amount of water and electricity required for output of the industries.

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IV.
Set up the outside “Demand Vector”

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V.
Write the system of linear equations which will provide a solution representing the output level of each industry to satisfy all demands exactly.

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I.

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II.

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III.

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IV.

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V.