Suppose an economy has only two sectors: Goods and Services. Each year, Goods sells 75% of its outputs to Services and keeps the rest, while Services sells 72% of its output to Goods and retains the rest. Find equilibrium prices for the annual outputs of the Goods and Services sectors that make each sector's income match its expenditures. Denote the prices (that is, dollar values) of the total annual outputs of the Goods and Services sectors by PG and pg. respectively. If ps = $1000, then PG = $(Type an integer or a decimal.) If Ps $75. then PG $(Type an integer or a decimal.) Goods 0.75 0.72 Services

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Chapter1: Making Economics Decisions
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Suppose an economy has only two sectors: Goods and Services. Each year, Goods sells 75% of its outputs to Services and keeps the rest, while Services sells 72% of its output to Goods and retains the rest. Find equilibrium prices
for the annual outputs of the Goods and Services sectors that make each sector's income match its expenditures.
Denote the prices (that is, dollar values) of the total annual outputs of the Goods and Services sectors by PG and ps. respectively.
If ps = $1000, then PG = $(Type an integer or a decimal.)
If Ps = $75. then PG = $. (Type an integer or a decimal.)
Goods
0.75
0.72
Services
0.28
Transcribed Image Text:Suppose an economy has only two sectors: Goods and Services. Each year, Goods sells 75% of its outputs to Services and keeps the rest, while Services sells 72% of its output to Goods and retains the rest. Find equilibrium prices for the annual outputs of the Goods and Services sectors that make each sector's income match its expenditures. Denote the prices (that is, dollar values) of the total annual outputs of the Goods and Services sectors by PG and ps. respectively. If ps = $1000, then PG = $(Type an integer or a decimal.) If Ps = $75. then PG = $. (Type an integer or a decimal.) Goods 0.75 0.72 Services 0.28
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