The Ottawa Citizen cost $0.10 in 1970 and $0.50 in 1990. The average wage in manufacturing was $3.01 per hour in 1970 and $14.19 in 1990.
a) By what percentage did the price of a newspaper rise?
b) By what percentage did the wage rise?
c) In each year, how many minutes does a worker have to work to earn enough to buy a newspaper?
To earn 3.01$ he needs to work for 60 mins
To earn 0.1 $ he needs to work for (60/3.01)*.1 = 1.9933 mins in 1970
By the same logic, he needs to work (60/14.19)*.5 = 2.1142 mins in 1990
d) Did workers' purchasing power in terms of newspapers rise or fall?