George owns a house on a 10-acre lot filled with peach trees. Each year he hires a few workers to pick the peaches, then he sells them to Patty's Pies for $5,000. Patty uses the peaches to make pies that she sells for $8,000 to local restaurants. The local restaurants sell the pies (by the slice) to consumers for a total of $10,000. Instructions: Enter your answers as a whole number. a. As a result of these transactions, GDP increases by: $ b. The value added by George is: $ The value added by Patty is: $ The value added by the local restaurants is: $

George owns a house on a 10-acre lot filled with peach trees. Each year he hires a few workers to pick the peaches, then he sells them to Patty's Pies for $5,000. Patty uses the peaches to make pies that she sells for $8,000 to local restaurants. The local restaurants sell the pies (by the slice) to consumers for a total of $10,000. Instructions: Enter your answers as a whole number. a. As a result of these transactions, GDP increases by: $ b. The value added by George is: $ The value added by Patty is: $ The value added by the local restaurants is: $

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter10: Price-searcher Markets With Low Entry Barriers

Section: Chapter Questions

Problem 3CQ

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