1988 1989
Quantity Price ($) Quantity Price ($)
Milk 10 1.00 15 1.20
Butter 8 0.50 20 0.50
Eggs 8 0.25 4 1.00
The table above gives the prices and quantities for a hypothetical country that only produces milk, butter, and eggs. With 1988 as the base year, what is the Real GDP in 1989?
(1 point)
Responses
$26
26 dollars
$16
16 dollars
$24
24 dollars
$32
To calculate the Real GDP in 1989 using 1988 as the base year, we need to multiply the quantities in 1989 by the prices in 1988.
For Milk: 15 (quantity in 1989) * 1.00 (price in 1988) = 15
For Butter: 20 (quantity in 1989) * 0.50 (price in 1988) = 10
For Eggs: 4 (quantity in 1989) * 0.25 (price in 1988) = 1
Adding these together: 15 + 10 + 1 = 26
Therefore, the Real GDP in 1989 is $26.
So, the correct answer is:
$26
26 dollars