Problem
Consider the following Sraffa-like system of equations describing a subsistence economy in which there are two commodities / two sectors, and both commodities (Food and Oil) are used in the production of each commodities (Food and Oil): 500 tons Food + 1000 barrels Oil → 1,300 tons Food 800 tons Food + 400 barrels Oil → 1,400 barrels Oil Question: What is the exchange ratio that allows this subsistence economy to reproduce itself? Now consider this next system of equations and unknowns depicting a three-commodity, three-sector subsistence economy in which there is now a high-tech information commodity / good, denoted tb INT (i.e., bytes of data usage on the Internet). Food: 700 tons Food + 1,000 barrels Oil +70 tb INT → 1,900 tons Food Oil: 700 tons Food + 400 barrels Oil + 40 tb INT → 2,600 barrels Oil Tech: 500 tons Food + 1,200 barrels Oil + 40 tb INT → 150 tb INT