3. Use the information provided in the table below for an economy that produces only apples and oranges.

Assume year 1 is the base year.

Year 1 Year 2 Quantity of apples 3,000 4,000 Price of an apple $0.20 $0.30 Quantity of oranges 2,000 3,000 Price of an orange $0.40 $0.50 What was the value of real GDP in each year?

Year 1 Year 2

a. $1,400 $2,700

b. $1,900 $2,700

c. $1,400 $2,000

d. $1,900 $2,000

e. $1,400 $1,900