A dozen eggs cost 0.96 in December 2000 and 1.82 in December 2017. The average wage for workers in private industries was 14.28 per hour in December 2000 and 22.31 in December 2017.
By what percentage did the price of a dozen eggs rise?
The Correct Answer and Explanation is:
To calculate the percentage increase in the price of a dozen eggs from December 2000 to December 2017, we can use the following formula for percentage change:
[
\text{Percentage Change} = \left(\frac{\text{New Price} – \text{Old Price}}{\text{Old Price}}\right) \times 100
]
In this case:
- The old price (December 2000) is $0.96.
- The new price (December 2017) is $1.82.
Plugging these values into the formula gives:
[
\text{Percentage Change} = \left(\frac{1.82 – 0.96}{0.96}\right) \times 100
]
Calculating the difference:
[
1.82 – 0.96 = 0.86
]
Now, divide by the old price:
[
\frac{0.86}{0.96} \approx 0.8958
]
Finally, multiplying by 100 to get the percentage:
[
0.8958 \times 100 \approx 89.58\%
]
Therefore, the price of a dozen eggs rose by approximately 89.58% from December 2000 to December 2017.
Explanation
The calculation of the price increase for a dozen eggs over the specified period illustrates the significant inflationary pressures that can affect food prices. In December 2000, a dozen eggs cost $0.96, which is a relatively low price by today’s standards. Fast forward to December 2017, the price had risen to $1.82. This change represents an increase of about 89.58%, indicating that the cost of eggs nearly doubled within this 17-year span.
Understanding this price change is critical for various stakeholders. For consumers, it reflects the impact of inflation on everyday goods, making it essential for budgeting and financial planning. For policymakers and economists, such data highlight trends in the economy, including inflation rates, purchasing power, and wage adjustments. Notably, the average hourly wage also increased during this time, from $14.28 to $22.31. This rise in wages can mitigate the impact of increased prices to some extent, but when prices of essential commodities like food rise significantly, it can strain household budgets, particularly for low- to moderate-income families. Therefore, tracking these changes helps provide insights into economic health and living standards over time.