The price of long-distance telephone service fell from 40 cents per minute in 1996 to 22 cents per minute in 1999, a 45-percent (18 cents/40 cents) decrease. Suppose that the Consumer Price Index increased by 12 percent over this period. What happened to the real price of telephone service? The real price of telephone service by percent. (Enter your response rounded to two decimal places.)

The price of long-distance telephone service fell from 40 cents per minute in 1996 to 22 cents per minute in 1999, a 45-percent (18 cents/40 cents) decrease. Suppose that the Consumer Price Index increased by 12 percent over this period. What happened to the real price of telephone service? The real price of telephone service by percent. (Enter your response rounded to two decimal places.)

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter4: Labor And Financial Markets

Section: Chapter Questions

Problem 29P: Predict how each of the following events will raise or lower the equilibrium wage and quantity of...

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