Economy, asked by lakshanir2003, 10 months ago

During a particular period the cost of living index increases from 120 to 210 and the daily wages of a worker in a factory was also increased from Rs 70 to Rs 115.Is the worker actually gained,if yes,by how much in real terms?​

Answers

Answered by sonalip1219
50

No, the worker did not gained.

Explanation:

The cost of living index increases or rises from 120 to 210

The daily wages of the worker in the factory should rise to, which is computed as:

Daily wages = Old Daily wages × New Cost of living index / Old cost of living index

= 70 × 210 / 120

= 14,700 / 120

= Rs 122.5

But the daily wage of the worker in the factory risen to Rs 120. Though the worker did not gain in the real term and the real wages decreased to:

= 115 × 120 / 210

= 13,800 / 210

= Rs 65.71

Therefore, the real wage of the worker is Rs 65.71, which got decreased from Rs 70, before the rise in the price.

Answered by chinmoyeehazarika83
5

Cost of living index increases from 120 to 210.

Daily wages of a worker in a factory should increase to

=70*210/120

=122.5

but the daily wages of a worker in a factory increased to 120 rs.

thus, the worker didn't gain and the real wages have decreased to

=115*120/210=65.71

The real wage of the worker is Rs 65.71 as compared to Rs 70 before the rise in the price.

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