Question

Suppose that the total production of an economy consists of 4 oranges and 10 candy bars, each orange sells for $0.25, and each candy bar sells for $0.50. What is the market value of production in this economy?

Answer 1

Answer: $6

Explanation:

Total production of oranges= 4

Total production of candy bars=10

Each orange sells for=$0.25

Total market value of orange production=price × quantity

=$0.25×4

=$1

Each candy bar sells for= $0.50

Total market value of candy bar production=price of candy bar × quantity of candy bar

=$0.50 × 10

=$5

The economy produces oranges and candy bars.

The total market value of production in the economy= Total market value of Orange production + Total market value of candy bar production

=$1 + $5

=$6