A gallon of unleaded gasoline cost $1.15 in 1995 (CPI = 152.4) , while a gallon of gasoline cost $1.99 in 2016 (CPI = 237.1) .
After correcting for inflation, has the value of a gallon of unleaded gasoline changed from 1995 to 2016?
A) When converting $1.15 to 2016 dollars, the resulting amount is less than $1.99, so the value of a gallon of unleaded gasoline has risen.
B) When converting $1.15 to 2016 dollars, the resulting amount is $1.99, so the value of a gallon of unleaded gasoline has not changed.
C) When converting $1.15 to 2016 dollars, the resulting amount is more than $1.99, so the value of a gallon of unleaded gasoline has actually decreased.
D) There is not enough information provided to answer this question.
Correct Answer:
Verified
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