Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 24 - Part VIII - Measuring the Cost of Living - Problems and Applications - Page 520: 7

Answer

a) 1233% b) 587.2% c) 1970--2.68 minutes, 2011--5.2 minutes d)Yes, the purchasing power in terms of newspapers fell for workers.

Work Step by Step

a) increase = (new - old)/old*100 $(2-.15)/.15*100$ $1.85/.15*100$ $12.33*100$ $1233$% b) $(23.09-3.36)/3.36*100$ $19.73/3.36*100$ $5.872*100$ $587.2$% c) $.15*60/3.36$ $9/3.36$ $2.678$ $2.68$ $2*60/23.09$ $120/23.09$ $5.197$ $5.2$
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