Suppose that a can of soda cost 30 cents in 1970 and an identical can cost $2.00 in 2016. If the Consumer Price Index (CPI) in 1970 was 36, then the CPI in 2016 was:
A) 240.
B) 250.
C) 260.
D) 270.

Question

Quizplus · Accepted Answer

The CPI is a measure of the average change in prices over time. To find the CPI in 2016, we use the formula: (Price in 2016 / Price in 1970) * CPI in 1970 = CPI in 2016. So, ($2.00 / $0.30) * 36 = 240.

Suppose That a Can of Soda Cost 30 Cents in 1970