Each summer, many of the campsites at Georgia’s favorite state parks sell out mo

Question

Each summer, many of the campsites at Georgia’s favorite state parks sell out months in advance due to their limited supply, low prices, and prime locations and views. This has led entrepreneurs to reserve these campsites well in advance and then sell the reservations for a high premium on sites like Amazon and Craigslist. Does the money earned by these campsite scalpers appear in GDP? Why or why not? Suppose the state of Georgia cracks down on campsite scalping by doubling the price of campsites. Would this affect the state’s GDP? Explain.

Explanation / Answer

If the sale is just through classifieds, ( I am taking out amazon here which may declare accounts and accounted in GDP), the money is not reflected in the GDP, Only the portion of the money which they bought as ticket would be reflected in GDP, The share which the entrepreneur earned wont have any accounting, so its not reflected.

Yes, it will improve states GDP, because users are buying for double prices anyway, it is better that campsite owner recieve this premium than some middlemen making money.

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