An increase in the price of bread produced domestically will be reflected in:

Business

1 answer:

Zina [86]2 years ago

3 0

The increase will reflect in the GDP deflator and the Consumer price index.

The GDP Deflator is used to measure the level of prices of all new and domestically produced goods and services in an economy.

So, when there is an increase in price, the nominal GDP (Increased), so the GDP deflator Increased as well.

Consumer Price index is used to measure the inflated price of goods and services which are faced by all consumer households.

So, when there is an increase in price, there is change in CPI .

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denpristay [2]

Answer:

It is cheaper to buy the part. The company will save $5,000.

Explanation:

Giving the following information:

UNitary production cost:

Direct Materials $10.50

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Total cost= (10.5 + 24 + 5.5)*1,000 + 7,000= $47,000

Now, the total cost of buying them:

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The cost for manufacturing a component used in intelligent interface converters was $23,000 the first year. The company expects