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

question 91

Essay

On the planet Economus, there are only two goods in the economy. One of the goods is econoapples. The quantity supplied of econoapples is fixed at 30. The second type of good is the econoseed. The quantity supplied of econoseeds is fixed at 60. The demand for econoapples is:
= 15 - 2P_A + 4P_S. The demand for econoseeds is:
= 45 + P_A - P_S. If the Economus world government institutes a tax of $1 on the price of econoapples, what is the effect on the amount econoapple consumers pay? Determine the equilibrium price and quantity of each good in the Economus economy.

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Definitions:

Distributive Justice

Concerns the fair allocation of resources and benefits among members of a society or group.

Fairly Allocated

The perception or condition of resources, duties, or rewards being distributed in a just and equitable manner among all parties.

Procedural Justice

The fairness and transparency of the processes that lead to outcomes or decisions.

Perceived Inequity

The feeling or belief that fairness has not been maintained in social exchanges or distribution of resources.