Question

In 1998 a dozen eggs sold for $1.20 and the price index was 162. In 2018 a dozen eggs sold for $1.77 and the price index was 247. Based on this information, the nominal price of the eggs was lower in ____ and the real price of the eggs was lower in _______.

Answer 1

The information given in the question can be categorized in the below table

Year	Price of Dozen Eggs (Nominal)	Price Index	Real price of Dozen Egg = (Nominal Price/Price Index)x100
1998	$1.20 (Lower)	162	$0.74
2018	$1.77	247	$0.72 (Lower)

The nominal price refers the price of dozen eggs in their respective year, so it is clearly evident from the above table that the nominal price of egg was lower in 1998

The real price dozen eggs is the nominal price of dozen eggs adjusted for inflation. So it is clearly evident from the above table that the Real price of egg was lower in 2018