Question
During the outbreak of COVID-19 in 2020, most households in the United States had decided to prepare a many of their meals as possible at
During the outbreak of COVID-19 in 2020, most households in the United States had decided to prepare a many of their meals as possible at home. Each day they purchased the ingredients needed for 900 million meals at an average cost of $7 per meal at stores. They also purchased 100 million meals from restaurants at an average price of $15 per meal.
With the vaccination rates growing in 2021, households are expected to increase their restaurant use by 150 million meals to 250 million meals, thus reducing meals prepared at home by the same number of meals to 750 million meals per day. Assume that the cost of groceries and food preparation per meal at home and the price of restaurant meals in 2021 are the same as in 2020. How much will this shift in food consumption pattern increase the US GDP per day compared to the situation in 2020?
a.$0 million per day
b.$500 million per day
c.$700 million per day
d.$1,200 million per day
e.$2,250 million per day
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