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:
= 30 + P_A -
P_S. The second type of good is the econoseed. The supply of econoseeds is:
= 60 - P_A + P_S. The demand for econoapples is:
= 15 - P_A + 4 P_S. The demand for econoseeds is:
= 45 + P_A - P_S. 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?

---

Definitions:

Temperature Monitoring

The process of continuously measuring and recording body or environmental temperature to assess health or conditions.

Tepid Water Sponging

A method of gently applying lukewarm water to the skin, often used to reduce fever or cleanse the body.

Glass Mercury Thermometer

A traditional thermometer that uses mercury encased in glass to measure temperature.

Catheterization

A medical procedure used to drain urine from the bladder when a patient is unable to do so naturally, involving the insertion of a tube called a catheter.