From 1960 to 1970, the consumer price index (CPI) increased from 29.6 to 48.2. If a dozen donuts cost $0.89 in 1960 and the price of donuts increased at the same rate as the CPI from 1960 to 1970, approximately how much did a dozen donuts cost in 1970?

A. $1.79
B. $1.45
C. $1.49
D. $1.63

Question

From 1960 to 1970, the consumer price index (CPI) increased from 29.6 to 48.2. If a dozen donuts cost $0.89 in 1960 and the price of donuts increased at the same rate as the CPI from 1960 to 1970, approximately how much did a dozen donuts cost in 1970?

A. $1.79
B. $1.45
C. $1.49
D. $1.63

Vocaloid · Answer

(1970 consumer price index)/(1960 price index) = (cost of donuts in 1970)/(cost of donuts in 1960)