The textbook shows that the inflation-adjusted movie receipts for Titanic (released in 1997)were $3,205,455,051 in 2015 and the original receipts were $2,186,772,302.The implication is that
A) prices were about the same in 2015 as in 1997.
B) hyperinflation has occurred since 1997.
C) prices were about one-third lower in 2015 than they had been in 1997.
D) prices were roughly 50% higher in 2015 than they had been in 1997.
E) Titanic was a bad movie at the time of its release but has become more popular over time.

Question

Quizplus · Accepted Answer

The fact that the inflation-adjusted movie receipts for Titanic were higher in 2015 than the original receipts in 1997 implies that there has been inflation since 1997. The percentage increase can be calculated as follows:

Inflation rate = (Inflation-adjusted receipts - Original receipts) / Original receipts x 100%
= ($3,205,455,051 - $2,186,772,302) / $2,186,772,302 x 100%
= 46.5%

Therefore, prices were roughly 50% higher in 2015 than they had been in 1997.

The Textbook Shows That the Inflation-Adjusted Movie Receipts for Titanic