Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Macroeconomics Expert

Parity Price is a price which maintains the ratio of prices received and paid through farmers at the same ratio as in a base year. Parity price of, state, corn, is a price of corn which keeps farmers as well off relatively as they were in the specified base year (the average of prices in years 1920 -1914). If farmers received the parity price for corn, the ratio of prices received by farmers for that corn to prices paid by farmers would always be similar as it was in the base year. For illustration, say the base year price of corn was $3 a bushel and the price paid by farmers for the composite of manufactured goods was $4. If the price of manufactured goods increases to $6 a bushel (an increase of 50%), the parity price of corn as well increases by 50% to $4.50 in this hypothetical illustration.

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M99990

Have any Question? 


Related Questions in Macroeconomics

1 what does the assumption of2 what does the assumption of

1) What does the assumption of 2) What does the assumption of constant velocity imply?

Economic presentationcreate a 4- to 6-slide microsoft

Economic Presentation Create a 4- to 6-slide Microsoft PowerPoint presentation that will be presented to the organization's Executive Committee. The presentation should cover the following items: • Explain economic fluct ...

Real estate and the strength of the economy youve been

Real Estate and the Strength of the Economy You've been debating on making a purchase for yourself.  This is a product you've wanted for a while, but one that requires budgeting because you will be making monthly payment ...

1 you are the economic advisor to sir bufton tufton the

1) You are the economic advisor to Sir Bufton Tufton, the Prime Minister of Per- fidia. The Bank of Perfidia is pegging the exchange rate of the local currency, the Perfidian albion. The albion is pegged to the wotan, wh ...

What is the payoff for a put option with a strike price of

What is the payoff for a put option with a strike price of $50 if the stock price at expiration is $65? Please provide detail of how you got your answer.

Please help menbspanswer the followingnbsp question based

Please help me answer the following  question based on the course outline and the text professor required. (around 400 words each question) The phenomenon known as the Industrial Revolution was the culmination of a proce ...

Pick a product or service you use in your everyday life and

Pick a product or service you use in your everyday life and describe the market for this product.  For this paper we will use the UBER driving service.  Please make sure to address the following questions: 1. What factor ...

1 what is opportunity cost and what does it mean2 what are

1. What is opportunity cost and what does it mean? 2. What are the eight guideposts to economic thinking and how to incentives fit into thinking like an economist? 3. What role does scarcity play in economic thought? Doe ...

Discuss what is meant by demand-side fiscal policy and

Discuss what is meant by demand-side fiscal policy and supply-side fiscal policy. When the economy enters a recessionary gap, state how the government would use a demand side fiscal policy and how the government would us ...

Discussiona major topic of discussion today is the price of

Discussion A major topic of discussion today is the price of fuel. Over the past several years the price paid for a gallon of gasoline, diesel fuel, or jet fuel has been fluctuating. Indeed, all products that are derived ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen