Question

decide whether the following statement makes sense (or is clearly true) or does not make sense (or is clearly false). explain yo reasoning.
the price per gallon of gasoline has risen from only a quarter in 1918 to nearly $5 in 2022, thereby making it much more diff the poor to afford fuel for their cars.
choose the correct answer below.
a. the statement makes sense because even with inflation taken into account, the price per gallon of gasoline in 1918 was muc less than the price in 2022.
b. the statement does not make sense because when inflation is taken into account, the two prices are quite comparable.
c. the statement does not make sense because \poor\ is too vague a description to be meaningful in this context.
d. the statement makes sense. gasoline is twelve times as expensive today compared to 1918, so it makes sense that it is more difficult for the poor to afford fuel for their cars.

Explanation:

When comparing prices over long - time periods (1918 to 2022), inflation must be considered. Inflation is the general increase in prices and fall in the purchasing value of money over time. If we just look at the nominal prices (the actual dollar amounts without adjusting for inflation), we get a misleading picture. For example, a quarter in 1918 had much more purchasing power than a quarter today. When we adjust for inflation, the price of gasoline in 1918 (in 2022 dollars) is comparable to the 2022 price. So, the statement that the price increase from 1918 to 2022 makes it more difficult for the poor to afford fuel without considering inflation is not a valid comparison.

Answer:

B. The statement does not make sense because when inflation is taken into account, the two prices are quite comparable.