We have the following information for an economy. All values are in billion dollars. Output (Income) Y Net Тахes Disposable Consumption Income Planned Investment Government Purchases Planned Saving S=Yg -C Spending Aggregate Expenditure C+1+G Ya -Y-T $200 $100 $100 $75 $25 $80 $120 $275 300 100 200 150 50 80 120 350 400 100 300 225 75 80 120 425 500 100 400 300 100 80 120 500 600 100 500 375 125 80 120 575 700 100 600 450 150 80 800 100 120 650 700 525 175 80 120 900 100 800 725 600 200 80 120 1000 100 900 800 675 225 80 120 1100 100 1000 875 750 250 80 120 1200 100 1100 950 825 275 80 120 1300 100 1200 900 1025 300 80 120 1100 1400 100 1300 975 325 80 120 1175 In this economy, equilibrium income/output is (Enter your response as an integer.) At Y = $1200, planned aggregate expenditure v income, and income or output

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Market Failure Analysis

To understand Market failure, we need to first understand welfare economics. An Italian economist, Vilfredo Pareto stated that allocation of resources in an efficient manner such that an economic change, which harms no one and makes someone better off, indicates an increase in social welfare. It is also called Pareto Optimality, where resources cannot further be reallocated without harming one. This does not apply to those economic changes, which harm some and benefit others. social welfare increases if the utility of any of its members' increases and none decrease in the economy.