In the 1950s, the average price of a ticket to an afternoon movie was 14 cents. The price index in 1952 was 26.56. How much would that 14-cent movie ticket cost in today's dollars if the current price index is 251.1?
A)$1.32
B)$1.46
C)$0.15
D)$1.00

Question

Quizplus · Accepted Answer

To adjust the price from 1952 to today's dollars, use the formula: (Old Price * Current Price Index) / Old Price Index. Plugging in the numbers: (14 cents * 251.1) / 26.56 = $1.32.

In the 1950s, the Average Price of a Ticket to an Afternoon