The table below shows the prices of the inputs and outputs for the production of a road bike.Raw naterialsManuf acturingConstructionSale by theretailerThe retailer sellsthebike for $500Bike mechanic putseverything togetherRubber for one tire ($20)Tire maker sells tires for$30 eachBike frame and components: andAluminum for the fr ame($80)Frame maker sells them forsells the bike for$350latotal of $250Other component materials($70)Instructions: Round your answers to the nearest dollar.a. What value is added by the supplier of the raw materials?$b. What value is added by the tire maker?10c. What value is added by the maker of the frame and components?d. What value is added by the bike mechanic?2$e. What value is added by the bike store?$f. What is the total contribution of the bike to GDP?%24%24%24

a) The value added by supplier of raw materials is the sum of raw materials value ie…

The table below shows the prices of the inputs and outputs for the production of a road bike. Ianuf acturing Rav naterials Construction Sale by the retailer Bike nechanic puts everything together The retailer sells the bike for $500 Rubber for one tire ($20) Tire maker sells tires for $30 each Bike frame and components: and Frame maker sells them for Aluminum for the frame ($80) sells the bike for $350 a Other component materials total of $250 ($70) Instructions: Round your answers to the nearest dollar. a. What value is added by the supplier of the raw materials? 2$ b. What value is added by the tire maker? 10 c. What value is added by the maker of the frame and components? d. What value is added by the bike mechanic? 2$ e. What value is added by the bike store? f. What is the total contribution of the bike to GDP?

The table below shows the prices of the inputs and outputs for the production of a road bike. Ianuf acturing Rav naterials Construction Sale by the retailer Bike nechanic puts everything together The retailer sells the bike for $500 Rubber for one tire ($20) Tire maker sells tires for $30 each Bike frame and components: and Frame maker sells them for Aluminum for the frame ($80) sells the bike for $350 a Other component materials total of $250 ($70) Instructions: Round your answers to the nearest dollar. a. What value is added by the supplier of the raw materials? 2$ b. What value is added by the tire maker? 10 c. What value is added by the maker of the frame and components? d. What value is added by the bike mechanic? 2$ e. What value is added by the bike store? f. What is the total contribution of the bike to GDP?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The table below shows the prices of the inputs and outputs for the production of a road bike.
Raw naterials
Manuf acturing
Construction
Sale by the
retailer
The retailer sells
the
bike for $500
Bike mechanic puts
everything together
Rubber for one tire ($20)
Tire maker sells tires for
$30 each
Bike frame and components: and
Aluminum for the fr ame
($80)
Frame maker sells them for
sells the bike for
$350
la
total of $250
Other component materials
($70)
Instructions: Round your answers to the nearest dollar.
a. What value is added by the supplier of the raw materials?
$
b. What value is added by the tire maker?
10
c. What value is added by the maker of the frame and components?
d. What value is added by the bike mechanic?
2$
e. What value is added by the bike store?
$
f. What is the total contribution of the bike to GDP?
%24
%24
%24

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