Suppose that the total production of an economy consists of

Suppose that the total production of an economy consists of 4 oranges and 10 candy bars, each orange sells for $0.25, and each candy bar sells for $0.50. What is the market value of production in this economy?

Solution

Number of oranges (O)= 4

Number of Candy bars (C)= 10

Price of Oranges (PO)= $0.25

Price of Candy bars (PC)= $0.50

Market value of production= (PO)*(O)+(PC)*(C)=$0.25*4+$0.5*10=$1+$5=$6