The price tag on a tennis ball in 1975 read $0.10, and the price tag on a tennis ball in 2005 read $1.00. The CPI in 1975 was 52.3, and the CPI in 2005 was 191.3. In 1975 dollars, a 1975 tennis ball cost $0.10 and a 2005 tennis ball cost $0.27, so tennis balls were cheaper in 1975. $3.66, so tennis balls were cheaper in 1975. $3.66, so tennis balls were cheaper in 2005. $0.27, so tennis balls were cheaper in 2005.

The price tag on a tennis ball in 1975 read $0.10, and the price tag on a tennis ball in 2005 read $1.00. The CPI in 1975 was 52.3, and the CPI in 2005 was 191.3. In 1975 dollars, a 1975 tennis ball cost $0.10 and a 2005 tennis ball cost

$0.27, so tennis balls were cheaper in 1975.

$3.66, so tennis balls were cheaper in 1975.

$3.66, so tennis balls were cheaper in 2005.

$0.27, so tennis balls were cheaper in 2005.

 

 

Answer:

In 1975, CPI was 52.3 and in 2005 CPI was 191.3 . We can see CPI have changed since 1975. A tennis ball’s price in 1975 was $0.10 .

Price rise = CPI in 2005 / CPI in 1975

Price rise = 191.3 /52.3

Price rise = 3.66 , Tennis balls were cheaper in 1975.

Option B is correct.

Asked on February 15, 2018 in economics.
Add Comment
0 Answer(s)
  • Votes
  • Oldest

Your Answer

By posting your answer, you agree to the privacy policy and terms of service.