In 1940 You Could Buy a "Nickel Pepsi" for (Oddly

question 63

Multiple Choice

In 1940 you could buy a "nickel Pepsi" for (oddly enough) a nickel.If the price index in 1940 was 14 and the 2011 price index was 221,then the inflation-adjusted price of a Pepsi would be

• A) a nickel ($0.05).
• B) a dime ($0.10).
• C) about 79 cents ($0.79).
• D) about $1.21.
• E) $0.00317.

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