In Example 1.3, what economic forces explain why the real price of eggs has fallen while the real price of a college education has increased? How have these changes affected consumer choices? Example...

In Example 1.3, what economic forces explain why the real price of eggs has fallen while the real price of a college education has increased? How have these changes affected consumer choices?

Example 1.3

In 1970, Grade a large eggs cost about 61 cents a dozen. In the same year, the average annual cost of a college education at a private four-year college, including room and board, was about $2112. By 2016, the price of eggs had risen to $2.47 a dozen, and the average cost of a college education was $25,694. In real terms, were eggs more expensive in 2016 than in 1970? had a college education become more expensive?

Table 1.2 shows the nominal price of eggs, the nominal cost of a college education, and the CPI for 1970–2016. (The CPI is based on 1983 = 100.)