Answer :
Final answer:
To find the 2000 price of a taco in 1970 dollars, we need to adjust the 2000 price using the CPI. The 2000 price of a taco in 1970 dollars is approximately $0.25.
Explanation:
To find the 2000 price of a taco in 1970 dollars, we need to adjust the 2000 price using the CPI. The CPI is a measure of inflation, which tells us how prices have changed over time. We can use the formula:
Adjusted Price = (2000 Price) x (1970 CPI / 2000 CPI)
Plugging in the given values, we get:
Adjusted Price = $1.09 x (38.8 / 172.2) = $1.09 x 0.2255 = $0.2459
Therefore, the 2000 price of a taco in 1970 dollars is approximately $0.25.
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