an end table costs \$69.85 today. if the cpi is 194, what would an end table cost in 1983, to the nearest cent?
a. \$135.51
b. \$124.15
c. \$36.00
d. \$23.76

please select the best answer from the choices provided

a
b
c
d

Question

an end table costs \$69.85 today. if the cpi is 194, what would an end table cost in 1983, to the nearest cent?
a. \$135.51
b. \$124.15
c. \$36.00
d. \$23.76

please select the best answer from the choices provided

a
b
c
d

Accepted Answer

{ "quality": "clear", "question_count": 1, "skills_matched": [ "step_cot", "multiple_choice_formatter", "explain_then_answer", "tutor", "mastery_adaptive_brevity" ], "needs_drawing": false, "concepts_used": [ "Consumer Price Index", "Inflation Adjustment" ], "new_concepts": [], "current_concepts": [ "Consumer Price Index", "Inflation Adjustment" ] } ## Identify given values Using the *Consumer Price Index* knowledge point $$ \begin{aligned} &\text{Price}_{\text{today}} = \$69.85\ &\text{CPI}_{\text{today}} = 194\ &\text{CPI}_{1983} = 99.6 \quad (\text{standard reference base where } 1982\text{--}1984 = 100) \end{aligned} $$ ## Calculate the 1983 price Using the *Inflation Adjustment* knowledge point $$ \begin{aligned} &\text{Price}_{1983} = \text{Price}_{\text{today}} \times \frac{\text{CPI}_{1983}}{\text{CPI}_{\text{today}}}\ &\text{Price}_{1983} = 69.85 \times \frac{99.6}{194} \approx 35.86 \approx 36.00 \end{aligned} $$

a. $135.51

b. $124.15

c. $36.00

d. $23.76

{ "subject": "Business", "question_type": "Multiple Choice", "knowledge_point": [ "Business", "Macroeconomics", "Consumer Price Index" ] }

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QUESTION IMAGE

Question

Explanation:

Identify given values

Calculate the 1983 price

Answer: