Question

Suppose that Glitter Gulch, a gold mining firm, increased its sales revenues on newly mined gold from $10 million to $20 million between one year and the next. Assuming that the price of gold increased by 100 percent over the same period, by what numerical amount did Glitter Gulch’s real output chang

Answer 1

So, in the first year, they mined some amount of gold, and it was sold for $10 million.

In the second year, two things could have happened. First, the real output of gold mined could have changed. Second, as the problem states, the price of gold increased by 100%. These two factors together resulted in revenue of $20 million.

The question wants to know if the amount of gold mined changed, and if so, by how much.