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mixas84 [53]
3 years ago
8

From 1970 to 1990, the consumer price index (CPI) increased from 38.8 to 130.7. If a tube of toothpaste cost $0.77 in 1970 and t

he price of toothpaste increased at the same rate as the CPI from 1970 to 1990, by approximately how much did the price of a tube of toothpaste increase from 1970 to 1990?
Mathematics
2 answers:
kumpel [21]3 years ago
5 0

Answer:

Increase in the price of toothpaste is $1.82

Step-by-step explanation:

As we know the formula of consumer price index

C.P.I.=\frac{P_{1} }{P}.100

Here P1 = Current price of the the product

P = Price of the product in the base year

Now we will plug in the values for year 1970

38.8=\frac{0.77}{P}.100---------(1)

Similarly for year 1990

130.7=\frac{P_{1} }{P}.100------------(2)

Now we will divide equation 2 from 1.

\frac{130.7}{38.8}=\frac{P_{1} }{0.77}

P_{1}=\frac{(130.7)(0.77)}{38.8}=2.59

Therefore price of toothpaste in year 1990 will be = $2.59

Since in 1970 price of toothpaste was = $0.77

So change in price from 1970 to 1990 = 2.59 - 0.77 = 1.82

Increase in the price of a tube of toothpaste will be $1.82

arlik [135]3 years ago
3 0
The answer (according to apex) is 1.82
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