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verdant
10-21-2004, 09:49 AM
For a certain farm, soybean production increased by 25 percent from year X to year Y, and the selling price of soybeans decreased by 25 percent from year X to year Y. If the entire soybean production was sold each year, approximately what was the percent change in the revenues from the sale of the soybeans from year X to year Y?

a 56% decrease
b 6% decrease
c no change
d 6% increase
e 56% increase

bigduke
10-21-2004, 03:08 PM
its got to be B :D

Econ
10-21-2004, 04:06 PM
Yes I aver bigduke, the answer is -6.25% ~ -6%.
{ Let production in the first year and price in the first year be 10 and 10 respectively, the revenues =100. Now (7.5)*(12.5) = 93.75.

Dingus
10-21-2004, 04:15 PM
I got B too! :D

lmtuan
10-23-2004, 09:11 AM
Answer is B.
(100% - 100% * 125% * 75% = -6.25%)

awhig
10-23-2004, 12:25 PM
It has to be B.