In 1976, the cost of a ticket to see a movie in the theater was $4. In 2019, a movie ticket cost $9. If the CPI is 56 for 1976 and 228 for 2019, then we could say the cost of a 1976 movie ticket in 2019 is _______, which indicates that the price of movie tickets _______.

Question

Quizplus · Accepted Answer

To adjust the 1976 price to 2019 dollars, use the formula: (1976 price) * (2019 CPI / 1976 CPI) = (4) * (228 / 56) = $16.29. This indicates that, when adjusted for inflation, movie tickets are cheaper in real terms in 2019 than they were in 1976, meaning the price has not increased as much as general inflation.

In 1976, the Cost of a Ticket to See a Movie