Can these activities be considered part of GDP? Answer the following statements by indicating Yes or No. John sells fruits in the market in town. Two (2) were hurt in car accident and were treated in their local hospital. A garage buys spare tyres to sell to customers next year. If a Jamaican citizen works temporarily in St. Lucia. A Barbadian owns a firm in Haiti.   2.    Suppose you are given the following information:                 Qs = 200 + 3P                               Qd = 400 – P where Qs is the quantity supplied, Qd 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 Qd = 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).

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
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  1. 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:

                Qs = 200 + 3P                               Qd = 400 – P

where Qs is the quantity supplied, Qd 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 Qd = 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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