In 1964 in london, ontario one could buy a chili-dog and a root beer for $1.25, today the same chili dog and root beer cost $5.00. which set of cpi's would mean that the cost in today's dollars was the same as in 1964

3% inflation rise. No correct cpi option

Explanation:

Consumer Price Index(CPI) is calculated by the Bureau of Economic Analysis and Statistics of a country monthly and annually.

Consumer Price Index(CPI) is used for measuring the changes in the price level of consumer goods and services purchased by households.

Calculating the consumer price index; price in 1964= $1.25, today price= $5.0.

Therefore, consumer price index= Price in today- price in 1964÷ price in 1964,.

Consumer Price index(CPI)= $(5-1.25)/1.25 = 3.75/1.25 = 3 Percent price inflation rise.

For the first cpi; 112-80/80= 0.4 percent( not equal to the 3 Percent inflation rise).

For the second cpi: 141.6-60/60= 1.36 Percent inflation rise(not equal to the 3 Percent inflation rise).

For the third CPI: 126.4-75/75 =0.68 percent inflation rise[not equal to the 3 Percent inflation rise].

For the third CPI: 108.5-90/90=0.21 percent inflation rise(not equal to 3 Percent inflation rise)

Therefore, none of the options are right.

answer

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