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 = 0.85ps and på is free. One set of equilibrium prices for this economy is pc = $90, PE = $85, 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. If ps = $300, then pc =$and PE = $ (Type integers or decimals.)

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 = 0.85ps and på is free. One set of equilibrium prices for this economy is pc = $90, PE = $85, 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. If ps = $300, then pc =$and PE = $ (Type integers or decimals.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Economics
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