2)Suppose the household receive rice 70 percent of their income from producing rice and spends 30 percent of its total consumption expenditure on rice. If the price of rice rises by 20 percent, calculate:

Net rice sales as fraction of total consumption expenditure?

Percentage effect on real purchasing power?

3)Suppose the household earns 40% of their income by selling a cash crop, spends nothing on inputs, and consumes none of the cash crop. Rest of the 60% of their income received by selling their family labor. If the price of the cash crop rises by 20 percent and wage rate increases by 15%, calculate:

Net rice sales as fraction of total consumption expenditure?

Percentage effect on real purchasing power?

4) Suppose the value of corn a household produces is the equivalent of 60 percent of its income and the value of the corn it consumes is the equivalent of 30 percent of its consumption expenditure. Household also earns 30% of their income from selling their family labor and does not purchase any labor. If the price of corn decreases by 40 percent and wage rate increases by 20 percent, calculate:

a. Net rice sales as fraction of total consumption expenditure?

b. Percentage effect on real purchasing power?