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In island K, there are one apple producer, two restaurants (A and B), some consumers/workers, and a government. The apple producer owns all apple trees,
In island K, there are one apple producer, two restaurants (A and B), some consumers/workers, and a government. The apple producer owns all apple trees, and it produces 10 million red apples and 10 million green apples. Red apples are sold for $2.00 each, and green apples aresold for $1.50 each. The apple producer sells 8 million red apples to restaurant A, andsells 2 million red apples to consumers directly. It sells all green apples (10 million) torestaurant B. Taxes paid to the government are $2.5 million. Wages paid to workers are $20 million. 8 million red apples in restaurant A are processed into 4 million apple cakes, and each apple cake is sold for $10.00 to consumers. To make these apple cakes, restaurant A pays $15 million wages to its workers, $2 million in interest on a loantosome consumers, and $2 million taxes to the government. 10 million green apples in restaurant B are made as 10 million units of apple juices, and each unit apple juice is sold for $3.00 to consumers. Restaurant Bpay its workers $5 million in total, and pay $1.5 million taxes to the government. Consumers earn wages, receive interest, and pay $1 million taxes
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