Question

(Challenge Question) A baker sells five pies to a Jill’s Fresh Pies for $20. Jill’s Fresh Pies resells three "fresh" pies for $9 per pies. The remaining pies are boxed and sold online for a total of $16. Taking all these transactions into account, how much is added to GDP?

Answer 1

Answer:

$43

Explanation:

Data given in the question

Sale value of Jill fresh pies = $20

Resale value of each pies = $9

Number of pies for reselling = 3

And, the remaining pies sale value = $16

By considering the above information, the amount added to GDP is

= Resale value of each pies × Number of pies for reselling  + the remaining pies sale value

= $9 × 3 + $16

= $27 + $16

= $43