Question

Your history book cost $43 dollars in 1999. The earlier edition sold for $37 in 1992. Comparing the converted costs, which book is more expensive? (Assume the 1999 CPI is 166.3 and the 1992 CPI is 140.3)

Answer 1

When the converted costs are compared, the earlier edition of the history book is more expensive.

Which book is more expensive?

The consumer price index measures the changes in price of a basket of good. It is used to measure inflation.

Converted price of the earlier edition = (CPI in 1992 / CPI in 1999) x later edition of the book

(140.3 / 166.3) x $43 = $36.28

To learn more about, consumer price index, please check: brainly.com/question/26382640

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