The New York Times cost $0.15 in 1970 and $0.75 in 2000. The average wage in manufacturing was $3.23 per hour in 1970 and $14.32 in 2000. 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?
d. Did workers’ purchasing power in terms of newspapers rise or fall?
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By what percentage did the price of a newspaper rise?
To answer these questions, we can use simple percentage calculations and a comparison of the price of the newspaper with the average wage. Let's go step by step:
a. To find the percentage increase in the price of a newspaper, we can use the formula:
Percentage increase = ((New price - Old price) / Old price) * 100
In this case, the old price is $0.15 and the new price is $0.75. Plugging these values into the formula:
Percentage increase = (($0.75 - $0.15) / $0.15) * 100
Simplifying this expression:
Percentage increase = ($0.60 / $0.15) * 100
Percentage increase = 400%
Therefore, the price of the newspaper rose by 400%.
b. To find the percentage increase in wage, we can use a similar formula:
Percentage increase = ((New wage - Old wage) / Old wage) * 100
The old wage is $3.23 and the new wage is $14.32. Plugging these values into the formula:
Percentage increase = (($14.32 - $3.23) / $3.23) * 100
Simplifying this expression:
Percentage increase = ($11.09 / $3.23) * 100
Percentage increase ≈ 342.42%
So, the wage increased by approximately 342.42%.
c. To find out how many minutes a worker has to work to earn enough to buy a newspaper, we need to compare the price of the newspaper with the wage.
In 1970, a newspaper cost $0.15 and the wage was $3.23 per hour. To find the number of minutes worked to earn enough for the newspaper:
Minutes worked = (Price of newspaper / Wage per hour) * 60
Minutes worked = ($0.15 / $3.23) * 60
Minutes worked ≈ 2.77 minutes
So, in 1970, a worker had to work approximately 2.77 minutes to earn enough to buy a newspaper.
Similarly, in 2000, a newspaper cost $0.75 and the wage was $14.32 per hour:
Minutes worked = ($0.75 / $14.32) * 60
Minutes worked ≈ 3.14 minutes
Therefore, in 2000, a worker had to work approximately 3.14 minutes to earn enough to buy a newspaper.
d. To determine whether the workers' purchasing power in terms of newspapers rose or fell, we compare the number of minutes worked to earn a newspaper in 1970 and 2000.
In 1970, a worker needed to work approximately 2.77 minutes to earn a newspaper, while in 2000, a worker needed to work around 3.14 minutes. The number of minutes worked increased, indicating that the purchasing power of workers in terms of newspapers diminished over time.
In conclusion, the price of newspapers rose by 400%, the wage increased by approximately 342.42%, the number of minutes worked to earn a newspaper increased from around 2.77 minutes to 3.14 minutes, and the workers' purchasing power in terms of newspapers fell over time.