Ask Question
BusinessBusiness
5 April, 01:57

The price of a gallon of gasoline was $0.35 in 1972 when the CPI equaled 0.418. The price of a gallon of gasoline was $2.25 in 2005 when the CPI equaled 1.68. The real price of a gallon of gasoline between 1972 and 2005:

+4
Answers (1)
  1. 5 April, 03:05
    0
    increased

    Explanation:

    Data provided in the question:

    Price of a gallon of gasoline in 1972 = $0.35

    CPI in 1972 = 0.418

    Price of a gallon of gasoline in 2005 = $2.25

    CPI in 2005 = 1.68

    Now,

    Real cost in 1972 = [ Nominal cost in 1972 ] : [ CPI in 1972 ]

    = $0.35 : 0.418

    = $0.837

    Real cost in 2005 = [ Nominal cost in 2005 ] : [ CPI in 2005 ]

    = $2.25 : 1.68

    = $1.34

    Hence,

    The price of gallon of gasoline increased between 1972 and 2005
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The price of a gallon of gasoline was $0.35 in 1972 when the CPI equaled 0.418. The price of a gallon of gasoline was $2.25 in 2005 when ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
If the demand for loanable funds shifts to the right, then the equilibrium interest rate a. and quantity of loanable funds rises. b. and quantity of loanable funds falls. c. falls and the quantity of loanable funds rises. d.
Answers (1)
On July 1, 2019, Major Co. pays $15,120 to Mesa Insurance Co. for a 4 - year insurance contract. Both companies have fiscal years ending December 31 Journalize and post the entry on July 1 and the adjusting entry on December 31 for Mesa Insurance Co.
No Answers
The actual cost of direct materials is $10.50 per pound. The standard cost per pound is $11.75. 42) During the current period 10,000 pounds were used in production and 11,500 pounds werepurchased.
Answers (1)
Determine the value of the investment at the end of 5 years. Write a function f that determines the value of the investment (in dollars) in terms of the number of years t since the investment was made.
Answers (1)
Otool Inc. is considering using stocks of an old raw material in a special project. The special project would require all 150 kilograms of the raw material that are in stock and that originally cost the company $2,236 in total.
Answers (1)
New Questions in Business
Shares of RossCorp stock are selling for $45 per share. Brokerage commissions are 2% for purchases and 2% for sales. The interest rate on margin debt is 6.25% per year. The maintenance margin is 30
Answers (1)
For each of the goods, identify the characteristics that describe each good. Note that each good will be described with two characteristics. Rivalrous is also referred to as rival in consumption.
Answers (1)
What is production technology and how does it differ from a production function? A. It is a function showing the highest output that a firm can produce for every specified combination of inputs, while the production function shows the minimum output
Answers (1)
The lowest school dropout rate in the united states in 2008 occurred for:
Answers (1)
One reason buy a home instead of rent a home is
Answers (1)
Home » Business » The price of a gallon of gasoline was $0.35 in 1972 when the CPI equaled 0.418. The price of a gallon of gasoline was $2.25 in 2005 when the CPI equaled 1.68. The real price of a gallon of gasoline between 1972 and 2005:
Sign Up Forgot Password?