Question

Circle the correct answer. Suppose that the index of prices received by farmers for 2015 was 0.97 and the base year of this index was 2000 . Then, a. relative to 2015 , farm prices were $97 \%$ higher in 2000 . b. relative to 2000 , farm prices were $3 \%$ lower in 2015. c. relative to 2015 , farm prices were $3 \%$ lower in 2000. d. relative to 2000 , farm prices were $97 \%$ higher in 2015 .

   Circle the correct answer.
Suppose that the index of prices received by farmers for 2015 was 0.97 and the base year of this index was 2000 . Then,
a. relative to 2015 , farm prices were $97 \%$ higher in 2000 .
b. relative to 2000 , farm prices were $3 \%$ lower in 2015.
c. relative to 2015 , farm prices were $3 \%$ lower in 2000.
d. relative to 2000 , farm prices were $97 \%$ higher in 2015 .

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Introduction to agricultural economics

Introduction to agricultural economics

John B. Penson,… 7th Edition

Chapter 2, Problem 4

Instant Answer

Step 1

An index number is a statistical measure designed to show changes in a variable or a group of related variables with respect to time, geographic location, or other characteristics. In this case, the index number represents the change in prices received by farmers. Show more…

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Circle the correct answer. Suppose that the index of prices received by farmers for 2015 was 0.97 and the base year of this index was 2000 . Then, a. relative to 2015 , farm prices were $97 \%$ higher in 2000 . b. relative to 2000 , farm prices were $3 \%$ lower in 2015. c. relative to 2015 , farm prices were $3 \%$ lower in 2000. d. relative to 2000 , farm prices were $97 \%$ higher in 2015 .

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