If the price of wheat rises by 10 percent and the ratio of a household's net marketed surplus in wheat to total income is m,then its real purchasing power rises by approximately how much?

Question

Quizplus · Accepted Answer

The real purchasing power increases by 10m percent because the household's income from the wheat surplus increases by 10 percent, and since m represents the ratio of this surplus to total income, the overall increase in purchasing power is 10m percent.

If the Price of Wheat Rises by 10 Percent and the Ratio