The parity ratio initially stood at 0.50.Then after several years, the prices received byfarmers doubled while the prices they paid tripled

Mathematics
1

The parity ratio initially stood at 0.50.Then after several years, the prices received byfarmers doubled while the prices they paid tripled.This will bring the parity ratio
to:

A) 0.25
B) 0.33
C) 0.75
D) 0.80

2

The parity ratio initially stood at 0.50.Then after several years, the prices received byfarmers doubled while the prices they paid tripled.This will bring the parity ratio
to:

Answer: The parity ratio is a measure of the relationship between the prices received by farmers for their products and the prices they pay for goods and services used in production.

If the parity ratio initially stood at 0.50, it means that farmers received half the value of what they paid for inputs.

Now, if the prices received by farmers double while the prices they paid tripled, the new parity ratio can be calculated as follows:

New Parity Ratio = (2* Initial Prices Received) / (3 * Initial Prices Paid)

Substituting the values, we get:

New Parity Ratio = (2 * 0.50) / (3 * 1) = 1/3

Therefore, the new parity ratio will be 0.33 or option B.