Joe complained to Jill that he had agreed to pay $800 in cash plus a fixed number of bushels of wheat as the yearly rental for his farm. That, he explained, would amount to $70 an acre when wheat was worth .75c a bushel. Since wheat is now worth $1 a bushel, he must pay $80 an acre, which he thought was too much. What is the size of the farm? Thanks for help.
A difference of $1 - .75 =0.25c in the price of wheat per bushel makes a difference of $80 - $70 =$10 an acre in rent. Hence the rent paid in wheat is: $10 / 0.25c =40 bushels per acre. The value of 40 bushels of wheat then is: $40 x $1 =$40, so that the rent, per acre, paid in cash is: $80 - $40 =$40 per acre. Therefore, the number of acres is: $800/$40 = 20 acres, which is the size of the farm.
