In 1970, the CPI Was 39 and in 2000 It

question 69

Multiple Choice

In 1970, the CPI was 39 and in 2000 it was 172. A local phone call cost $0.10 in 1970. What is the
Price of this phone call in 2000 dollars?

• A)$0.44
• B)$1.72
• C)$0.23
• D)$1.42
• E)$0.39

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Definitions:

Selling Price

The amount of money for which a product or service is sold to customers.

Skimming Pricing Strategy

A pricing strategy where a product is initially sold at a high price, which is gradually lowered to attract more price-sensitive customers.

Home Electronics

Electronic devices intended for everyday use in private homes, such as televisions, refrigerators, and microwaves.

Penetration Pricing

A strategy of setting a low initial price for a product or service to attract customers quickly and gain market share.