Producer Price Sells For Price Paid for Intermediate Goods $0 $0.60 Farmer Miller Baker $0.60 $1.40...

Question

Question

Answer 1

Answer #1

Answer: The baker must pay $2.50*10%=$0.25,

Final charges to consumers $2.50+($2.50*10%)=$2.75

Hence answer is option (D) $0.25;$2.75

Answer 2

Similar Homework Help Questions

A farmer grows wheat and sells it to the miller for $84. The miller turns the...

A farmer grows wheat and sells it to the miller for $84. The miller turns the wheat into flour and sells it to the baker for $117. The baker turns the flour into bread and sells it to consumers for $188. What is the value added by the baker? Enter a whole number with no other characters.
A farmer grows wheat, which she sells to a miller for $90. The miller turns the...

A farmer grows wheat, which she sells to a miller for $90. The miller turns the wheat into flour, which she sells to a baker for $145. The baker turns the wheat into bread, which she sells to consumers for $155. Consumers eat the bread, Assume that these transactions account for all economic activity in this economy GDP in this economy is $100 Value added is defined as the value of a producer's output minus the value of the Intermediate...
9) Problems and Applications Q9 A farmer grows wheat, which she sells to a miller for...

9) Problems and Applications Q9 A farmer grows wheat, which she sells to a miller for $90. The miller turns the wheat into flour, which she sells to a baker for $145. The baker turns the wheat into bread, which she sells to consumers for $155. Consumers eat the bread. Assume that the above transactions account for all economic activity in an economy. GDP in this economy is $______ Value added is defined as the value of a producer’s output...