Use the Consumer Price Index below to answer the question. $$\begin{array}{l}
\text { Average Annual Consumer Price Index (1982-1984 = 100) }\
\begin{array} { c | c | c | c | c | c }
\text { Year } & \text { CPI } & \text { Year } & \text { CPI } & \text { Year } & \text { CPI } \
\hline 1986 & 109.6 & 1995 & 152.4 & 2004 & 188.9 \
1987 & 113.6 & 1996 & 156.9 & 2005 & 195.3 \
1988 & 118.3 & 1997 & 160.5 & 2006 & 201.6 \
1989 & 124.0 & 1998 & 163.0 & 2007 & 207.3 \
1990 & 130.7 & 1999 & 166.6 & 2008 & 215.3 \
1991 & 136.2 & 2000 & 172.2 & 2009 & 214.5 \
1992 & 140.3 & 2001 & 177.1 & 2010 & 218.1 \
1993 & 144.5 & 2002 & 179.9 & 2011 & 224.9 \
1994 & 148.2 & 2003 & 184.0 & 2012 & 229.6
\end{array}
\end{array}$$
-A book cost $12 in 1987. What was its price in 1990 dollars?
A)$14
B)$15
C)$10
D)$13

Question

Use the Consumer Price Index below to answer the question. $$\begin{array}{l}
\text { Average Annual Consumer Price Index (1982-1984 = 100) }\
\begin{array} { c | c | c | c | c | c } 
\text { Year } & \text { CPI } & \text { Year } & \text { CPI } & \text { Year } & \text { CPI } \
\hline 1986 & 109.6 & 1995 & 152.4 & 2004 & 188.9 \
1987 & 113.6 & 1996 & 156.9 & 2005 & 195.3 \
1988 & 118.3 & 1997 & 160.5 & 2006 & 201.6 \
1989 & 124.0 & 1998 & 163.0 & 2007 & 207.3 \
1990 & 130.7 & 1999 & 166.6 & 2008 & 215.3 \
1991 & 136.2 & 2000 & 172.2 & 2009 & 214.5 \
1992 & 140.3 & 2001 & 177.1 & 2010 & 218.1 \
1993 & 144.5 & 2002 & 179.9 & 2011 & 224.9 \
1994 & 148.2 & 2003 & 184.0 & 2012 & 229.6
\end{array}
\end{array}$$
-A book cost $12 in 1987. What was its price in 1990 dollars?
A)$14
B)$15
C)$10
D)$13

Quizplus · Accepted Answer

To find the price in 1990 dollars, use the formula: Price in 1990 = Price in 1987 * (CPI in 1990 / CPI in 1987). So, $12 * (130.7 / 113.6) ≈ $13.80, which rounds to $14.

Use the Consumer Price Index Below to Answer the Question