Suppose the average price of gas in 2014 was $0.95 per litre and $0.97 in 2015.The inflation rate was 3 percent in 2015.What was the 2015 price of gas in 2014 dollars?

Question

Quizplus · Accepted Answer

To calculate the 2015 price of gas in 2014 dollars, we first need to adjust the 2015 price for inflation. The inflation rate was 3 percent, so we can calculate the inflation factor as 1 + 0.03 = 1.03. 
Then, we can divide the 2015 price by the inflation factor to get the 2014 price:

$0.97 ÷ 1.03 = $0.942

Therefore, the answer is B.

Suppose the Average Price of Gas in 2014 Was $0