Analyzing the purchasing power of workers
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The New York Times cost $0.15 in 1970 and $0.75 in 2000. The average wage in manufacturing was $3.23 per hour in 1970 and $14.32 in 2000.
a. By what percentage did the price of a newspaper rise?
b. By what percentage did the wage rise?
c. In each year, how many minutes does a worker have to work to earn enough to buy a newspaper?
d. Did workers' purchasing power in terms of newspapers rise or fall?
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Solution Summary
Solution analyzes the purchasing power of workers in terms of newspapers.
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a. By what percentage did the price of a newspaper rise?
Percent change in newspaper price=(0.75-0.15)/0.15=400.00%
b. By what percentage did the wage rise?
Percent ...
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- BEng (Hons) , Birla Institute of Technology and Science, India
- MSc (Hons) , Birla Institute of Technology and Science, India
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