Solved

On the Planet Economus, There Are Only Two Goods in the Economy

Question 5

Essay

On the planet Economus, there are only two goods in the economy. One of the goods is econoapples. The supply of econoapples is: On the planet Economus, there are only two goods in the economy. One of the goods is econoapples. The supply of econoapples is: = 30 + P<sub>A</sub> - P<sub>S</sub>. The second type of good is the econoseed. The supply of econoseeds is: = 60 - P<sub>A</sub> + P<sub>S</sub>. The demand for econoapples is: = 15 - P<sub>A</sub> + 4 P<sub>S</sub>. The demand for econoseeds is: = 45 + P<sub>A</sub> - P<sub>S</sub>. Determine the equilibrium price and quantity of each good in the Economus economy. Suppose the world government of Economus implements a $1 tax on econoapples. Do econoapple consumers suffer any burden of the tax? Are econoseed consumers affected by the econoapple tax? How much tax revenue does the tax policy generate?
= 30 + PA - On the planet Economus, there are only two goods in the economy. One of the goods is econoapples. The supply of econoapples is: = 30 + P<sub>A</sub> - P<sub>S</sub>. The second type of good is the econoseed. The supply of econoseeds is: = 60 - P<sub>A</sub> + P<sub>S</sub>. The demand for econoapples is: = 15 - P<sub>A</sub> + 4 P<sub>S</sub>. The demand for econoseeds is: = 45 + P<sub>A</sub> - P<sub>S</sub>. Determine the equilibrium price and quantity of each good in the Economus economy. Suppose the world government of Economus implements a $1 tax on econoapples. Do econoapple consumers suffer any burden of the tax? Are econoseed consumers affected by the econoapple tax? How much tax revenue does the tax policy generate?
PS. The second type of good is the econoseed. The supply of econoseeds is: On the planet Economus, there are only two goods in the economy. One of the goods is econoapples. The supply of econoapples is: = 30 + P<sub>A</sub> - P<sub>S</sub>. The second type of good is the econoseed. The supply of econoseeds is: = 60 - P<sub>A</sub> + P<sub>S</sub>. The demand for econoapples is: = 15 - P<sub>A</sub> + 4 P<sub>S</sub>. The demand for econoseeds is: = 45 + P<sub>A</sub> - P<sub>S</sub>. Determine the equilibrium price and quantity of each good in the Economus economy. Suppose the world government of Economus implements a $1 tax on econoapples. Do econoapple consumers suffer any burden of the tax? Are econoseed consumers affected by the econoapple tax? How much tax revenue does the tax policy generate?
= 60 - PA + PS. The demand for econoapples is: On the planet Economus, there are only two goods in the economy. One of the goods is econoapples. The supply of econoapples is: = 30 + P<sub>A</sub> - P<sub>S</sub>. The second type of good is the econoseed. The supply of econoseeds is: = 60 - P<sub>A</sub> + P<sub>S</sub>. The demand for econoapples is: = 15 - P<sub>A</sub> + 4 P<sub>S</sub>. The demand for econoseeds is: = 45 + P<sub>A</sub> - P<sub>S</sub>. Determine the equilibrium price and quantity of each good in the Economus economy. Suppose the world government of Economus implements a $1 tax on econoapples. Do econoapple consumers suffer any burden of the tax? Are econoseed consumers affected by the econoapple tax? How much tax revenue does the tax policy generate?
= 15 - PA + 4 PS. The demand for econoseeds is: On the planet Economus, there are only two goods in the economy. One of the goods is econoapples. The supply of econoapples is: = 30 + P<sub>A</sub> - P<sub>S</sub>. The second type of good is the econoseed. The supply of econoseeds is: = 60 - P<sub>A</sub> + P<sub>S</sub>. The demand for econoapples is: = 15 - P<sub>A</sub> + 4 P<sub>S</sub>. The demand for econoseeds is: = 45 + P<sub>A</sub> - P<sub>S</sub>. Determine the equilibrium price and quantity of each good in the Economus economy. Suppose the world government of Economus implements a $1 tax on econoapples. Do econoapple consumers suffer any burden of the tax? Are econoseed consumers affected by the econoapple tax? How much tax revenue does the tax policy generate?
= 45 + PA - PS. Determine the equilibrium price and quantity of each good in the Economus economy. Suppose the world government of Economus implements a $1 tax on econoapples. Do econoapple consumers suffer any burden of the tax? Are econoseed consumers affected by the econoapple tax? How much tax revenue does the tax policy generate?

Correct Answer:

verifed

Verified

Equilibrium in the Econoapple market man...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q3: Use the following statements to answer this

Q7: The U.S. and Mexico can produce the

Q9: The contract curve in an Edgeworth Box

Q20: Once a point on a contract curve

Q29: A move from one point on a

Q35: Locating a point on a utilities possibilities

Q60: The slope of the production possibilities frontier

Q87: One day when Gilligan was diving in

Q100: Two individuals, Dave and Bob, consume two

Q105: Suppose an economy produces milk and honey,