The parity ratio initially stood at 0.5. Then after several years, the prices received by farmers doubled while the prices they paid tripled. This will bring the parity ratio to

Question

Quizplus · Accepted Answer

The parity ratio is calculated as the ratio of the prices received by farmers to the prices paid by them. If the prices received doubled and the prices paid tripled, the new ratio becomes (2 * original prices received) / (3 * original prices paid) = 2/3 * original parity ratio. Since the original parity ratio was 0.5, the new parity ratio is 2/3 * 0.5 = 0.33.

The Parity Ratio Initially Stood at 0