The Price of Electric Guitars Has Varied Considerably in Recent

question 182

Multiple Choice

The price of electric guitars has varied considerably in recent years. The data in the table relates the price P, in dollars, to time t, in years. Use a cubic function fitted to the data to predict the price of an electric guitar in year 10. $$\begin{array} { c | c } \text { Year, } \mathrm { t } & \begin{array} { c } \text { Average price, } \mathrm { p } , \\\text { of an electric guitar }\end{array} \\\hline 1 & \$ 618.20 \\\hline 2 & 783.20 \\\hline 3 & 674.30 \\\hline 4 & 721.60 \\\hline 5 & 825.00 \\\hline 6 & 891.00 \\\hline 7 & 852.50 \\\hline 8 & 819.50 \\\hline 9 & 783.20\end{array}$$

• A) $893.53
• B) $827.42
• C) $443.52
• D) $670.48

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Definitions:

Goods and Services

Physical products (goods) and intangible assistance or benefits (services) produced to satisfy the wants and needs of consumers.

Consumer Price Index

An index measuring the change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Inflation Rate

The level at which the total pricing metrics for goods and services peak, impairing the utility of money.

Inflation Rate

The acceleration in the average cost levels for goods and services, hindering effective buying power.