Suppose admission to a movie cost in. What was its price in dollars? Assume that all prices have risen at the same rate as the CPI.
The price was about $ nothing in 1979.

Question

Suppose admission to a movie cost in. What was its price in  ​dollars? Assume that all prices have risen at the same rate as the CPI.
The price was about ​$     nothing in 1979.

DK4L · Answer

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Mathery · Answer

Do you know how to calculate CPI?

DK4L · Answer

Isn't that the Average Annual Consumer Price Index?? is so nah

DK4L · Answer

if so

Mathery · Answer

Yes, the consumer price index. So, which one are we trying to find?

DK4L · Answer

I'm trying to find Suppose admission to a movie cost $8.50 in 2007. What was its price in 1979 ​dollars?

Mathery · Answer

Ah- that's what I needed, tysm. Can I get a minute to see how I'm going to explain this?

DK4L · Answer

Yea sure

Mathery · Answer

To calculate CPI you need the following equation;
$$CPI=\frac{ cost~of~market~basket~In~given ~year }{ cost~of~market~basket ~In~base~year }\times100percent$$

DK4L · Answer

So it would be 207.3/72.6*100

Mathery · Answer

Yes. 100%.

DK4L · Answer

So when I do that do I multiply it by the base year or noo

Mathery · Answer

So, it's saying the movie ticket, was $2.85 in 1979.

DK4L · Answer

That's it I don't have to multiply anything??

Mathery · Answer

Yeah, It says it exactly in the calculator on what I did.

DK4L · Answer

I think I did something wrong because how would it be $2.85 if the admission cost $8.50?

Mathery · Answer

@dk4l wrote:

I'm trying to find Suppose admission to a movie cost $8.50 in 2007. What was its price in 1979 dollars?

You figured it out in 2007, now you are figuring it out from 1979.

DK4L · Answer

would I do anything with the admission?

Mathery · Answer

no, all you are trying to figure out is the price it would've been in 1979 to go see that movie.

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