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The consumer price index released on September 11 showed consumer prices rose 2.5% year over year in August, down from 2.9% in July — the lowest index reading since March 2021.
Following the rise in the price of silver during the California Gold Rush and the disappearance of circulating silver coins, the Coinage Act of 1853 reduced the standard for silver coins less than $1 from 412.5 grains to 384 grains (24.9 g), 90% silver per 100 cents (slightly revised to 25.0 g, 90% silver in 1873).
If the price falls from $16 to $10 and the quantity rises from 80 units to 100, however, the price decline is 37.5% and the quantity gain is 25%, an elasticity of (+ %) / (%) = for the same part of the curve. This is an example of the index number problem. [15] [16]
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