In 1973,a 1.75 liter bottle of your professor's favorite beverage cost $16.Today it costs $32.
The consumer price index for 1973 was 44.4 and the current consumer price index is 184
(1983-84 = 100).If the price of this beverage had kept pace with the rate of inflation,this
Bottle would cost your professor
A) $17.
B) $23.
C) $36.
D) $66.
E) $72.

Question

Quizplus · Accepted Answer

To calculate the price of the beverage adjusted for inflation, use the formula: (Current CPI / Past CPI) * Past Price. Plugging in the values: (184 / 44.4) * $16 = 4.162162162 * $16 = $66.59, which rounds to $66, indicating that if the price had kept pace with inflation, the bottle would now cost $66.