Suppose an economy consists of the Coal, Electric, and Steel sectors. Denote the prices (that is, dollar values) of the total annual outputs of the Coal, Electric, and Steel sectors by PC, PE, and ps, respectively. Suppose the general solution to find equilibrium prices that make each sector's income match its expenditures is Pc = 0.9Ps, PE = 0.94ps, and på is free. One set of equilibrium prices for this economy is pc = $90, PE = $94, and ps = $100. Find another set. Suppose the same economy used Japanese yen instead of dollars to measure the values of the various sector's output. Would this change the problem in any way? Discuss.
Suppose an economy consists of the Coal, Electric, and Steel sectors. Denote the prices (that is, dollar values) of the total annual outputs of the Coal, Electric, and Steel sectors by PC, PE, and ps, respectively. Suppose the general solution to find equilibrium prices that make each sector's income match its expenditures is Pc = 0.9Ps, PE = 0.94ps, and på is free. One set of equilibrium prices for this economy is pc = $90, PE = $94, and ps = $100. Find another set. Suppose the same economy used Japanese yen instead of dollars to measure the values of the various sector's output. Would this change the problem in any way? Discuss.
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Transcribed Image Text:Suppose an economy consists of the Coal, Electric, and Steel sectors. Denote the prices (that is, dollar values) of the
total annual outputs of the Coal, Electric, and Steel sectors by PC, PE, and på, respectively. Suppose the general
solution to find equilibrium prices that make each sector's income match its expenditures is pc = 0.9Ps, PE = 0.94ps,
and på is free. One set of equilibrium prices for this economy is pc = $90, P₁ = $94, and på = $100. Find another set.
Suppose the same economy used Japanese yen instead of dollars to measure the values of the various sector's output.
Would this change the problem in any way? Discuss.
If ps = $200, then pc = $ 249 and PE = $ 252. (Type integers or decimals.)
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