V pays 20 cents

V sells to W for 35 cents
W sells to X for 55 cents
X sells to Y for 80 cents
Y sells to Z for $1.00

Contribution to GDP:
(a) 20 cents
(b) $1.00
(c) $1.90
(d) $2.90

go with b)

To determine the contribution to GDP in this scenario, we need to understand what GDP represents. GDP, or Gross Domestic Product, is a measure of the total value of all goods and services produced within a country's borders during a specific time period, typically a year.

In this case, we can trace the production and sale of the good from V to Z. Each transaction represents the value added at each stage of the production process. The contribution to GDP is calculated by adding up the final selling price at the end of the chain.

Let's follow the chain of transactions:

V sells for 20 cents
W sells for 35 cents (Value added: 35 - 20 = 15 cents)
X sells for 55 cents (Value added: 55 - 35 = 20 cents)
Y sells for 80 cents (Value added: 80 - 55 = 25 cents)
Z buys for $1.00 (Value added: $1.00 - 80 = 20 cents)

To calculate the total contribution to GDP, we add up the value added at each stage:

Value added by V: $0.20
Value added by W: $0.15
Value added by X: $0.20
Value added by Y: $0.25
Value added by Z: $0.20

The total contribution to GDP is the sum of these values:

$0.20 + $0.15 + $0.20 + $0.25 + $0.20 = $0.80

Therefore, the correct answer is (c) $1.90.