Question

Good x sold for $40 in 1945. the Cpi in 1945 was 18.0 and the cpi in 1999 was 166.6. what was the price of good x in 1999 dollars

Answer 1

Answer:

the price of good x in 1999 dollars is 370.89 dollars

Step-by-step explanation:

Given that good x sold for $40 in 1945. the Cpi in 1945 was 18.0 and the cpi in 1999 was 166.6.

We have cpi and sale price have direct variation

In other words S = kC where C = CPi and S = sales price

In 1945, 40 = 18k or K = 20/9

Using this we can say

Sales price in 1999 would be k (166.6)

=$\frac{20}{9} (166.6)\\= 370.89$

the price of good x in 1999 dollars is 370.89 dollars