When flat screen televisions were first introduced in 1997 they were priced at $15,000.If the CPI in 1997 was 160 and the CPI in 2019 is 265,then this price is equivalent to approximately ______________________in 2019 dollars.If the average flat screen TV sells for $550 in 2019,the percentage change between the inflation-adjusted price of a flat screen TV in 1997 and the actual price in 2019 price is ___________.
A) $15,469; -96.4 percent
B) $19,887; -95.6 percent
C) $24,844; -97.7 percent
D) $154; 3.6 percent
E) $367; 8.3 percent

Question

Quizplus · Accepted Answer

To calculate the inflation-adjusted price in 2019 dollars, we can use the CPI ratio method:
Inflation ratio = CPI in 2019/CPI in 1997 = 265/160 = 1.65625
Inflation-adjusted price in 2019 dollars = 15,000 x 1.65625 = $24,844

The percentage change between the inflation-adjusted price in 1997 and the actual price in 2019 is:
(24,844 - 550)/24,844 x 100% = 97.8%
So the correct answer is C, with a percentage change of -97.7% (rounded to one decimal place).

When Flat Screen Televisions Were First Introduced in 1997 They