High School

The price of gas per gallon in 1982 was $1.31. What would be the equivalent price in July 2022 dollars (the most recent data for the CPI available)? The CPI is 296.3 for July 2022. The base year for the CPI is 1982, so the value of the CPI in 1982 is 100.

Answer :

Final answer:

To find the equivalent price of gas in July 2022 dollars, divide the CPI for 2022 by the CPI for 1982 to find the inflation rate, then multiply the inflation rate by the price of gas in 1982. The equivalent price of gas in July 2022 dollars would be $3.87.

Explanation:

To find the equivalent price of gas in July 2022 dollars, we need to adjust the price from 1982 to 2022 using the Consumer Price Index (CPI). First, we divide the CPI for 2022 (296.3) by the CPI for 1982 (100) to find the inflation rate: 296.3 / 100 = 2.963. Next, we multiply the inflation rate by the price of gas in 1982: 2.963 * $1.31 = $3.87 (rounded to two decimal places). Therefore, the equivalent price of gas in July 2022 dollars would be $3.87.

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