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5. Problems and Applications Q9
5
s Tips
A farmer grous wheat, which she sells to a miller for $80. The miller turns the wheat
into flour, which she sells to a baker for $120. The bakers
the heat into bread, which she sells to consumers for $140. Consumers eat the bread.
3 Tips
Assume that these transactions account for all economic activity in this economy.
GOP in this economy is 5
ra FREE 7-
Unlimited
Limited
value added is defined as the value of a producer's output minus the value of the intermediate goods that the producer buys to make the output
re
Ansuring there are no intermediate goods beyond those just described, complete the following table by calculating the value added for each of the
three producers. Then enter the total value added in the final row.
Value Added
Producer
Dollars)

only 5 point

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