Scenario 16-1
The price tag on a tennis ball in 1975 read $0.10,and the price tag on a tennis ball in 2005 read $1.00.The CPI in 1975 was 52.3,and the CPI in 2005 was 191.3.
-Refer to Scenario 16-1.The price of a 1975 tennis ball in 2005 dollars is

Question

Quizplus · Accepted Answer

To find the price of a 1975 tennis ball in 2005 dollars, we need to adjust the 1975 price for inflation. We can use the CPI ratio to do this calculation: (191.3/52.3) x $0.10 = $0.37. Therefore, the price of a 1975 tennis ball in 2005 dollars is $0.37.

Scenario 16-1 The Price Tag on a Tennis Ball in 1975 Read