1. Suppose that a very simple economy produces four goods: oatmeal, dental care, cordless electric drills, and public parks. Half of the cordless drills are purchased by households and half are purchased by businesses. Suppose the quantities produced and their corresponding prices for 2007 and 2013 are shown in the table below. There are two public parks in this economy. The parks are public property and managed by the government, so there is no price, but each park costs $380,000 to operate in each year. 1. Suppose that a very simple economy produces four goods: oatmeal, dental care, cordless electric drills, and public parks. Half of the cordless drills are purchased by households and half are purchased by businesses. Suppose the quantities produced and their corresponding prices for 2007 and 2013 are shown in the table below. There are two public parks in this economy. The parks are public property and managed by the government, so there is no price, but each park costs $380,000 to operate in each year.

2007 2013 Product Quantity Price Quantity Price Oatmeal 40,000 $3.00 50,000 $5.00 Drills 500 $280 600 $300 Dentist visits 180 $100 170 $120