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8 April, 10:30

Suppose a consumer buys a Perfect Pizza frozen cheese pizza at the grocery store for $10. Perfect Pizza purchased the dough and tomato sauce from a food processing company for $2 and bought the cheese for $1. It sold the pizza to the store for $5. How much has GDP increased

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  1. 8 April, 10:38
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    The GDP of consumption price is increasing by $10

    Explanation:

    Consumption price GDP is that by $10 And the price of tomato sauce and cheese is indirect cost and that cost is the demand and we can't apply that directly. These costs may indirectly be used for calculated GDP.

    So, in the question given, consumers bought the Pizza from the $10 grocery store and tomato sauce and cheese is the intermediate cost so they can't add it directly.

    Therefore, The GDP of consumption price is increasing by $10
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