Consider the country Unsanitaria. The country had poor sanitation systems so the

Question

Consider the country Unsanitaria. The country had poor sanitation systems so the people fell sick often, missed work and lost income. Low income was also the reason why they could not afford sanitation. The effect of health (H) on income (Y) is given by

Y = 2.5H

The effect of income (Y) on health (H) is given by

H = 0.2Y + 2.

What is the income in this country?

Subsequently, the government of Unsanitaria improved the sanitation system in the country so the health indicators became better even for low income people. The effect of income (Y) on health (H) after sanitation improvements became:

H = 0.2Y + 12

What is the income in this country after sanitation improvements?

Explanation / Answer

The effect of health on income is

Y= 2.5H--------------------(1)

The effect of income in health is given by-

H=0.2Y+2--------------------(2)

Now we need to find the income of this country, substituting (2) in (1)

we have Y= 2.5 (0.2Y+2)

Y= 0.5Y+5

0.5Y=5

Y=10

Income in this country is 10

Now The effect of income o health after sanitation is H=0.2Y+12, so the income in this country after sanitation improvement is

Y= 2.5 ( 0.2Y+12)

Y= 0.5Y+ 30

0.5Y= 30

Y= 60

Income in this country after sanitation improvements is 60

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