The price of coal in 2020 is $58 per ton. The annual inflation between 2020 and 2030 is expected to be 5.6%. The price of coal is assumed to escalate at an annual average rate of 7.1% 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? (your answer must be rounded-off to the nearest dollars per billion joules, i.e., no decimal places)

The price of coal in 2020 is $58 per ton. The annual inflation between 2020 and 2030 is expected to be 5.6%. The price of coal is assumed to escalate at an annual average rate of 7.1% 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? (your answer must be rounded-off to the nearest dollars per billion joules, i.e., no decimal places)

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter17: Inflation

Section: Chapter Questions

Problem 4SQ

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