Question

From 1960 to 1970, the consumer price index (CPI) increased from 29.6 to 48.2. If a dozen donuts cost $0.89 in 1960 and the price of donuts increased at the same rate as the CPI from 1960 to 1970, approximately how much did a dozen donuts cost in 1970?

Answer 1

Answer: Dozen donuts cost in 1970 is $19.49.

Step-by-step explanation:

Since we have given that

Consumer price index in 1960 = 29.6

Consumer price index in 1970 = 48.2

Difference between 1960 and 1970 in terms of consumer price index would be

$48.2-29.6\\\\=18.6$

Cost of dozen donuts in 1960 = $0.89

And the price of donuts increased at the same rate as the CPI from 1960 to 1970.

so, the cost of dozen donuts would be

$\ 18.6+\ 0.89\\\\=\ 19.49$

Hence, Dozen donuts cost in 1970 is $19.49.

Answer 2

Answer:

$19.49‬

Step-by-step explanation:

48.2 - 29.6 = 18.6

18.6 + 0.89 = 19.49