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jolli1 [7]
3 years ago
14

Last​ year, the price of hamburger was ​$5 per pound and the price of trout was ​$6 per pound.       This​ year, the price of ha

mburger is ​$8 per pound and the price of trout is ​$9 per pound.   All other things​ equal, and assuming that Phillip purchased both items​ before, what would you expect to happen to his purchases of hamburger ​(relative to trout​) this​ year?
Business
1 answer:
eimsori [14]3 years ago
5 0

Answer: The relative Price of Hamburger has decreased, so Phillip would be expected to purchase more.

Explanation:

Given that,

Price of Hamburger(H):

Last year = $5 per pound

This year = ​$8 per pound

Price of trout(T):

Last year = $6 per pound

This year = ​$9 per pound

Last year's Relative price of Hamburger = \frac{H}{T}

                                                                  = \frac{5}{6}

                                                                  = 0.833

This year's Relative price of Hamburger = \frac{H}{T}

                                                                  = \frac{8}{9}

                                                                  = 0.888

The relative Price of Hamburger has decreased, so Phillip would be expected to purchase more.

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