Answered: Can these activities be considered part…

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter7: Macroeconomic Measurements, Part Ii: Gdp And Real Gdp

Section7.1: Gross Domestic Product

Problem 2ST

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Can these activities be considered part of GDP? Answer the following statements by indicating Yes or No.
1. John sells fruits in the market in town.
2. Two (2) were hurt in car accident and were treated in their local hospital.
3. A garage buys spare tyres to sell to customers next year.
4. If a Jamaican citizen works temporarily in St. Lucia.
5. A Barbadian owns a firm in Haiti.

2. Suppose you are given the following information:

Q^s = 200 + 3P Q^d = 400 – P

where Q^s is the quantity supplied, Q^d is the quantity demanded and P is price.

a) From this information compute equilibrium price and quantity.

b) Now suppose that a tax is placed on buyers so that Q^d = 400 – (2P + T) where T is taxes. If T = 20, solve for the new equilibrium price and quantity. (Note: You are solving for the equilibrium price for sellers and buyers and the equilibrium quantity).

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