Answer :
The real price of a $14 2022 movie ticket in 1947 dollars is $1.105, using the formula: Real Price = Nominal Price x (Base Year Index / Current Year Index).
To work out the genuine cost of a 2022 film ticket in 1947 bucks, we really want to utilize the recipe:
Genuine Cost = Ostensible Cost x (Base Year List/Current Year Record)
Utilizing the given data, we can substitute the qualities as follows:
Genuine Cost = $14 x (23.41/296.761)
Genuine Cost = $14 x 0.0788
Genuine Cost = $1.105
In this manner, the genuine cost of a 2022 film ticket, utilizing 1947 costs, was $1.105. This intends that assuming a similar film ticket was sold in 1947, it would have cost $1.105 in 1947 bucks. Price index the genuine cost of a decent or administration considers expansion, and this computation permits us to look at costs across changed time spans utilizing a typical reference point.
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The complete question is:
In 2022 , the upcoming Black Panther Wakanda Forever movie is priced at $14 per adult. Suppose the Price Index in 2022 is 296.761 and the Price Index in 1947 was 23.41. What vyas the price of a 2022 movie ticket in 1947 dollars. In other words, what was the real price of a movie in 2022 , using 1947 prices? ([tex]T$=$14,Y$[/tex]= ? Note: you will have to move the Y$ to the left side of the equation and change the position of [tex]P_{T}[/tex] and [tex]P_{T}[/tex]accordingly.) $0.005 $0.905. $1.104 $3.45.
Final answer:
The real price of a 2022 movie ticket, adjusted for inflation using 1947 prices, is approximately $1.11.
Explanation:
To find the equivalent price of a 2022 movie ticket in 1947 dollars, we need to adjust the 2022 price by the ratio of the 1947 price index to the 2022 price index. This is a method of adjusting for inflation, in this case, calculating the 'real price' of the movie ticket.
The formula for inflation adjustment is:
Real Price = Nominal Price * (Base Year CPI/Current Year CPI)
Plugging in the values from your question:
Real Price = $14 * (23.41/296.761)
The real price of the 2022 movie ticket in 1947 dollars is therefore: $1.11
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