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

Compare and contrast the different stages of the business

Compare and contrast the different stages of the business cycle and how inflation and unemployment vary via these different stages. Then discuss the appropriate fiscal and monetary policies to address inflation and unemp ...

Jesus told us not to worry about tomorrow because we are to

Jesus told us not to worry about tomorrow because we are to focus on today and we are not promised tomorrow. (Mt. 6:34) Does this mean we should spend as much as we want and not save any for the future? Explain.

Toys r us of arlington sells sports cars for little kids

Toys R Us of Arlington sells sports cars for little kids; during 2014 it sold a monthly average of 23,000 units for $13 per car. In early January 2015, Toys R Us major competitor, Walmart cut the price of its sport car t ...

Suppose you got a gift certificate to attend a concert in

"Suppose you got a gift certificate to attend a concert in town. The price of admission is $40. You would be willing to pay $30 to see the concernt. Your neighbor offered to pay you $20 for the ticket. Instead, you gave ...

Stolls pasty farms has contracted you to do an economic

Stoll's Pasty Farms has contracted you to do an economic analysis of the regional market for pasties and you have been operating under the assumption that a pasty is a pasty is a pasty - in other words, one pasty is just ...

What is a mixed economywho are karl marx adam smith and

What is a mixed economy Who are Karl Marx, Adam Smith, and John Maynard Keynes? What were their contributions to economics? What are the characteristics of Primitive Communalism, the Slave economy, Feudalism, Socialism, ...

Show a t-account for a bank when you make a deposit of 3000

Show a T-account for a bank when you make a deposit of $3000 into your checking account. Assume the reserve ratio is 15%. If the lending process continues as far as it can possibly go, how many deposit dollars will be cr ...

Provide an example of a method to hedge with energy futures

Provide an example of a method to hedge with energy futures. Explain why this is fiscally prudent. Use one reference when answering.

Asignmentlate in the day on august 72006 numerous us

Assignment Late in the day on August 7,2006 numerous U.S. airlines cut their fares on leisure travelers. These included American Airlines, Delta, Continental, and Southwest. This fare cut, which was approximately 4 to 8 ...

Say that in year 1 both k and l have values of 1 while in

Say that in year 1 both K and L have values of 1 while in year 10 K has a value of 1.35 and L has a value of 1.1. What is the annual rate of change for k (note the lower case)?

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

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