the average price of a domestic airline ticket in a particular region was $377 in 1991 and $213 in 2020. use…

the average price of a domestic airline ticket in a particular region was $377 in 1991 and $213 in 2020. use the table to complete parts (a) and (b)\nclick here to view the consumer price index table\n\na. if the 1991 average airfare had increased according to the consumer price index, what would the average fare have been in 2020? does this mean that airfares rose more or less than expected due to inflation?\nthe average fare would have been $ . this means the airfares rose expected.\n(round to the nearest dollar are needed.)\n\nconsumer price index (cpi)\n\nyear cpi year cpi year cpi\n1981 90.9 1995 152.4 2009 214.5\n1982 96.5 1996 156.9 2010 218.1\n1983 99.6 1997 160.5 2011 224.9\n1984 103.9 1998 163.0 2012 229.6\n1985 107.6 1999 166.6 2013 233.0\n1986 109.6 2000 172.2 2014 236.7\n1987 113.6 2001 177.1 2015 237.0\n1988 118.3 2002 179.9 2016 240.0\n1989 124.0 2003 184.0 2017 245.1\n1990 130.7 2004 188.9 2018 251.1\n1991 136.2 2005 195.3 2019 255.7\n1992 140.3 2006 201.6 2020 258.8

the average price of a domestic airline ticket in a particular region was $377 in 1991 and $213 in 2020. use the table to complete parts (a) and (b)\nclick here to view the consumer price index table\n\na. if the 1991 average airfare had increased according to the consumer price index, what would the average fare have been in 2020? does this mean that airfares rose more or less than expected due to inflation?\nthe average fare would have been $ . this means the airfares rose expected.\n(round to the nearest dollar are needed.)\n\nconsumer price index (cpi)\n\nyear cpi year cpi year cpi\n1981 90.9 1995 152.4 2009 214.5\n1982 96.5 1996 156.9 2010 218.1\n1983 99.6 1997 160.5 2011 224.9\n1984 103.9 1998 163.0 2012 229.6\n1985 107.6 1999 166.6 2013 233.0\n1986 109.6 2000 172.2 2014 236.7\n1987 113.6 2001 177.1 2015 237.0\n1988 118.3 2002 179.9 2016 240.0\n1989 124.0 2003 184.0 2017 245.1\n1990 130.7 2004 188.9 2018 251.1\n1991 136.2 2005 195.3 2019 255.7\n1992 140.3 2006 201.6 2020 258.8

Answer

Explanation:

Step1: Identify CPI values

The CPI in 1991 is 136.2 and in 2020 is 258.8.

Step2: Calculate the expected price in 2020

Use the formula $\text{Expected price in 2020}=\text{Price in 1991}\times\frac{\text{CPI in 2020}}{\text{CPI in 1991}}$. So, $377\times\frac{258.8}{136.2}$. $377\times\frac{258.8}{136.2}=377\times1.899559\approx716$.

Step3: Compare with actual price

The actual price in 2020 is $213$. Since $213<716$, airfares rose less than expected.

Answer:

The average fare would have been $$716$. This means the airfares rose less than expected.