Imagine that the United States produces only three goods: apples, bananas, and carrots. The quantities produced and the prices of thethree goods are listed below:GoodsApplesBananasCarrotsQuantitiesProducedPrices ($)72.0010241.001.50Instructions: Round your answers to two decimal places.a. U.S. GDP is: $b. Suppose that a drought hits the state of Washington. This drought causes the quantity of apples produced to fall to 4.Assuming that all prices remain constant, the new U.S. GDP is: $c. Assume, once again, that the quantities produced and the prices of the three goods are as listed in the table. Now, given thissituation, carrot sellers decide that the price of carrots is too low, so they agree to raise the price.If the U.S. GDP is $70.00, the new price of carrots is: $per carrot.

We just have to determine the total GDP =∑Q(P) Then we add the toal quantities multiplied by the…

Answered: Imagine that the United States produces…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please label which part of the question (a, b, c, or d) that you are answering. A small economy produces only two goods: bananas and computers. The prices and quantities of these goods for the years 2018, 2019 and 2020 are given below. Show all working where possible and express answers to 2 decimal points. Year Price of Bananas Quantity of Bananas (kgs) Price of Quantity of (per kg) Computers Computers 2018 $4.10 947 $331.00 55 2019 $ 4.20 970 $335.00 57 2020 $ 4.30 990 $340.00 60
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