when the cpi is 185, an electric razor cost \$57.81. what is the difference between the price of an electric razor in 1983 and the cost of an electric razor when the cpi is 207, to the nearest cent?
a. \$33.44
b. \$31.25
c. \$26.56
d. \$6.88

Question

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" ] } ## Calculate the price in 1983 Using the *Consumer Price Index* and *Inflation Adjustment* knowledge points $$ \begin{aligned} &\text{Base Year CPI (1982-1984 average)} = 100\ &P_{1983} = \$57.81 \times \frac{100}{185} \approx \$31.2486 \end{aligned} $$ ## Calculate the price when CPI is 207 Using the *Consumer Price Index* and *Inflation Adjustment* knowledge points $$ \begin{aligned} &P_{207} = P_{1983} \times \frac{207}{100} = \$57.81 \times \frac{207}{185} \approx \$64.6858 \end{aligned} $$ ## Calculate the difference between the two prices Using the *Inflation Adjustment* knowledge point $$ \begin{aligned} &\text{Difference} = P_{207} - P_{1983} \approx \$64.6858 - \$31.2486 = \$33.4372 \approx \$33.44 \end{aligned} $$

(a) $33.44

(b) $31.25

(c) $26.56

(d) $6.88

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

Sovi.AI - AI Math Tutor

QUESTION IMAGE

Question

Explanation:

Calculate the price in 1983

Calculate the price when CPI is 207

Calculate the difference between the two prices

Answer: