Question

A local grocery store provided fresh produce with a fair value of $800. The produce was immediately used. What was the fair value of the fresh produce?

1) $800
2) $600
3) $1000
4) $1200

Answer 1

The fair value of the fresh produce was $800. The amount spent on individual items is calculated by multiplying the quantity by the market price, illustrating the influence of supply and demand on prices in a market economy.

Step-by-step explanation:

The fair value of the fresh produce provided by the local grocery store was $800. This value represents the current market value at which the produce could be exchanged or sold. To compute the amount spent on each type of produce, one would need to know the quantity of each item and its market price. For example, if we look at the historical data from 2001, the expenditure on produce can be calculated as follows: 10 apples × 50 cents each results in $5.00 spent on apples; 12 bananas × 20 cents each equals $2.40 spent on bananas; and 2 bunches of grapes at 65 cents each gives $1.30 spent on grapes.

Additionally, if 1 pint of raspberries was bought at $2 each, then $2.00 was spent on raspberries. These examples illustrate how the demand and supply influence the prices in a market economy, which fluctuate based on consumer and producer interactions.