b. If in a given year (year X) the parity ratio stood at 0.60, it would mean that O prices paid by famers in year X rose by 60 percent over the prices paid in the base penod. O prices recelved in the base period could buy 60 percet as much as prices received in year X O prices receved in year X rose by 60 percent over the prices received in the base period O prices received in year X could buy 60 percent as much as prices received in the base period, c Suppose the parity ratio initially stood at 0.60, and after several years, the prices received by farmers tripled while the prices they paid doubled. The parity ratio-will be O0.98. 3O82. 0.90

b. If in a given year (year X) the parity ratio stood at 0.60, it would mean that O prices paid by famers in year X rose by 60 percent over the prices paid in the base penod. O prices recelved in the base period could buy 60 percet as much as prices received in year X O prices receved in year X rose by 60 percent over the prices received in the base period O prices received in year X could buy 60 percent as much as prices received in the base period, c Suppose the parity ratio initially stood at 0.60, and after several years, the prices received by farmers tripled while the prices they paid doubled. The parity ratio-will be O0.98. 3O82. 0.90

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter6: Demand Relationships Among Goods

Section: Chapter Questions

Problem 6.3P

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