The price of a movie ticket in 1959 was $2,while in 2017 it was $10.The price index in 1959 was 30 and in 2017 it was 116.4 (2002 = 100).What are the 1959 and 2017 ticket prices respectively measured in 2002 prices?

Question

Quizplus · Accepted Answer

To find the ticket prices in 2002 prices, we need to use the following formula:

(price in year A / price index in year A) x price index in year B = price in year B

For 1959:

($2 / 30) x 116.4 = $7.76

So, the 1959 ticket price measured in 2002 prices is $7.76.

For 2017:

($10 / 116.4) x 116.4 = $10

So, the 2017 ticket price measured in 2002 prices is $10.

Therefore, the correct answer is D, which gives the 1959 and 2017 ticket prices as $6.67 and $8.59, respectively, measured in 2002 prices.

The Price of a Movie Ticket in 1959 Was $2,while