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Rudik [331]
3 years ago
12

A tire manufacturer produces 400 tires valued at $20 each. Three hundred tires are sold to a tire shop, which then sells them to

households for $50 each. The remaining tires are unsold and are added to the tire manufacturer’s inventory. How much is added to GDP?
Business
1 answer:
Lapatulllka [165]3 years ago
3 0

Answer:

The amount added to the GDP is $17000.

Explanation:

The value added to the GDP = number of tires sold×selling price of 1 tire + number of tires unsold ×cost price of 1 tire

                                                = 300 ×$50 + 100×$20

                                                = $15000 + $2000

                                                = $17000

Therefore, the amount added to the GDP is $17000.

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