Would appreciate if someone could explain for Example 9, SOLUTION 2 , why for barley prices return to 2010 level, they will decline 25% in 2012? How do you come about the 25% decrease?
They say that from 2010 to 2011, barley prices increased 33%. You’re to assume that they remain stable in 2011, then return to 2010 levels in 2012.
1 / 1.33 = 0.75, a decline of 25%.