Scenario 16-4
Quinn has job offers in Wrexington and across the country in Charlieville.The Wrexington job would pay a salary of $50,000 per year,and the Charlieville job would pay a salary of $40,000 per year.The CPI in Wrexington is 150,and the CPI in Charlieville is 90.
-Refer to Scenario 16-4.If Quinn only cares about maximizing her purchasing power,then she should

Question

Quizplus · Accepted Answer

To maximize purchasing power, Quinn should look at how much she can buy with her salary in each location. The CPI in Charlieville is 90, meaning prices are relatively lower compared to the CPI in Wrexington, which is 150. Therefore, with a lower cost of living, Quinn's salary of $40,000 in Charlieville would go further than her salary of $50,000 in Wrexington. Therefore, she should take the Charlieville job.

Scenario 16-4 Quinn Has Job Offers in Wrexington and Across the Country