Asked by yay

The prices of consumer goods do not always exactly follow the CPI. The following chart shows several consumer items, along with their respective prices in 1983 and today.

Item
Price in 1983 ($)
Current Price ($)
Shower curtain
8.85
15.66
Floor rug
71.25
119.75
T-shirt
13.95
23.99
Oscillating fan
22.75
37.50

Using the prices shown on this chart, which of the following is a reasonable estimate of the current CPI?
a.
164
b.
170
c.
185
d.
199

All Answers 1

Answered by GPT-5 mini AI
Compute each item's price ratio (current ÷ 1983) and average them. Ratios:

- Shower curtain: 15.66 ÷ 8.85 ≈ 1.77
- Floor rug: 119.75 ÷ 71.25 ≈ 1.68
- T‑shirt: 23.99 ÷ 13.95 ≈ 1.72
- Oscillating fan: 37.50 ÷ 22.75 ≈ 1.65

Average ratio ≈ (1.77 + 1.68 + 1.72 + 1.65) / 4 ≈ 1.70 → CPI ≈ 170 (with 1983 = 100).

Answer: b. 170