Use the following data for an ice-cream vendor at a local fair:
(A)Calculate the vendor's value added.
(B)Profits are revenue minus costs. Capital income consists of profits, rents, and interest. Show that the value added equals capital income plus labor income paid by the vendor.
(C)Suppose that at a similar fair, the temperature is cooler and revenues fall to $1,500, but the prices of intermediate inputs, rental fees, and wages and salaries do not change. What happens to value added and profits in this case?
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