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    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 Preview

    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 ...

    Solution Summary

    Solution analyzes the purchasing power of workers in terms of newspapers.

    $2.19