Harry Porter worked at a library in 1996.A day's work paid him $35.If the price index was 65 in 1990 and 160 in 2011, how much was Harry's daily wage worth in 2011?

Question

Quizplus · Accepted Answer

To adjust Harry's wage from 1996 to its equivalent in 2011, we use the price index (a measure of inflation). The formula for adjusting for inflation is: (Wage in Past Year) * (Price Index in Current Year / Price Index in Past Year). Assuming the price index in 1996 was closer to 65 (1990's index) than to 160 (2011's index), and without the exact index for 1996, we approximate using the given years. The exact adjustment can't be calculated accurately without the 1996 index, but we can estimate the change in purchasing power. The significant increase in the price index from 65 to 160 suggests Harry's $35 in 1996 would buy much less in 2011. However, without doing precise calculations or having the 1996 index, we can't directly compute the exact worth of $35 in 2011 dollars. The choices provided don't directly correlate to this explanation, indicating a need for more information or a different approach to find a precise answer.

Harry Porter Worked at a Library in 1996