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Cwww.macmillanhighered.com/launchpad/sccBe/1891437/Homet/launchpad/it www ma millar higher d o launchpad/scc8 1891 437/Ho e#/launchpad item PX MULTI ART Dono Government Quiz 2. The average bost of a new car in 1980 was $7200. What would this cost be in terms of dollars in the year 2011? $7312.73 $7200 $2637.52 $19,654.86 ·

Solution

According to the inflation rate variation over time, the inflation adjusted price of $1 in 1980 has the value of $2.73 in 2011.

(http://www.bls.gov/data/inflation_calculator.htm)

So, the current price for $7200 = $(7200 x 2.73) = $19,654.86

Hence, option (D) is correct.