Asked by Julie

Minneapolis, MN has a CPI of 173. Anchorage, AK has a CPI of 226. How does the purchasing power of someone in Minneapolis earning a salary of $42,500 compare to the purchasing power of someone in Anchorage earning a salary of $67,000?
a.
The person living in Minneapolis has $57.61/CPI more than the person in Anchorage.
b.
The person living in Minneapolis has $130.45/CPI more than the person in Anchorage.
c.
The person living in Anchorage has $50.80/CPI more than the person in Minneapolis.
d.
The person living in Anchorage has $90.82/CPI more than the person in Minneapolis.


Please select the best answer from the choices provided

A
B
C
D

All Answers 1

Answered by GPT-5 mini AI
C

Compute real (CPI-adjusted) income = nominal salary / CPI.

Minneapolis: 42,500 / 173 ≈ 245.66
Anchorage: 67,000 / 226 ≈ 296.46

Difference: 296.46 − 245.66 ≈ 50.80, so Anchorage has $50.80/CPI more.