6 August, 02:55

# You might have heard your grandmother say, "when i was your age, candy bars cost a nickel." like candy bars, the price of fast food has increased over time. in 1968, the year mcdonald's introduced its big m

+2
1. 6 August, 04:51
0
The question is incomplete here is the complete question.

You might have heard your grandmother say, "when i was your age, candy bars cost a nickel." like candy bars, the price of fast food has increased over time. in 1968, the year McDonald's introduced its big m ac, the price was \$0.49 in 2015, a big mac costed \$4.79

Suppose the CPI in 1968 was 35 and the CPI in 2015 was 240, The base year for the CPI is 1983.

in real terms a Big Mac was more expensive in 1968

if the price of a Big Mac has kept up with the rate of inflation, its price in 2015 would have been ...

Explanation:

In real terms, big mac price in 1968 was 0.49x100/35=\$1.4

In real terms, big mac price in 2015was 4.79x100/240=\$2

So, it is more expensive in 2015

2> The price would have been \$0.49x240/35=\$3.36
2. 6 August, 04:54
0
yeah the price of products has increased a lot over the years. You grandma right