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From 1960 to 1970, the consumer price index (CPI) increased from 29.6 to 38.8. If a dozen tangerines cost $0.31 in 1960 and the price of tangerines increased at the same rate as the CPI from 1960 to 1970, approximately how much did a dozen tangerines cost in 1970?

A. $0.41
B. $0.30
C. $0.10
D. $0.39

Answer :

Final answer:

To find the approximate cost of a dozen tangerines in 1970, we can use the percentage increase in the Consumer Price Index (CPI) from 1960 to 1970 and apply it to the cost of tangerines in 1960. The cost of a dozen tangerines in 1970 is approximately $0.41.


Explanation:

To find the approximate cost of a dozen tangerines in 1970, we need to calculate the percentage increase in the consumer price index (CPI) from 1960 to 1970 and apply that same increase to the cost of tangerines in 1960. The formula to calculate the percentage increase is:

Percentage Increase = [(Final Value - Initial Value) / Initial Value] * 100%

Using the given values, the percentage increase in the CPI is:

[(38.8 - 29.6) / 29.6] * 100% ≈ 31.08%

Now, we can calculate the cost of a dozen tangerines in 1970:

Cost in 1970 = Cost in 1960 + (Cost in 1960 * Percentage Increase)

Cost in 1970 ≈ $0.31 + ($0.31 * 31.08%) ≈ $0.41.


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