Question
The price of coal in 2020 is $43 per ton. The annual inflation between 2020 and 2030 is expected to be 0.6%. The price of
The price of coal in 2020 is $43 per ton. The annual inflation between 2020 and 2030 is expected to be 0.6%. The price of coal is assumed to escalate at an annual average rate of 4.4% as a result of resource depletion (i.e., this escalation is independent of inflationary effects).
What is the price of coal in the year 2030, expressed in 2000 dollars?
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Price Theory and Applications
Authors: Steven Landsburg
9th edition
1285423526, 978-1285947877, 1285947878, 978-1285423524
