Suppose the current cost of gasoline is $2.86 per gallon. Find the current price index number, using the 1975 price of 56.7 cents as the reference value.

Question

Suppose the current cost of gasoline is ​$2.86 per gallon. Find the current price index​ number, using the 1975 price of 56.7 cents as the reference value.

LaylaLatina · Answer

Oh ok

AZ · Answer

$\Large CPI_t=\frac{C_t}{C_0} \times 100 $

$CPI_t$ is the consumer price index at this time
$ C_t$ is the cost in the currently
$ C_0$ is the cost in the initial base period

so you're trying to calculate $ CPI_t$

they told you $ C_t$ is 2.86
and that $ C_0$ is 0.567

can you use the formula and calculate the current price index number?