Suppose We Expect Consumer Prices to Increase by About 30

Multiple Choice

Suppose we expect consumer prices to increase by about 30 percent between 2010 and 2020, and the minimum wage was $7.25 per hour in 2010. What should be the minimum wage in 2020 if it is set to maintain the same purchasing power as in 2010?

A) $7.25
B) $7.55
C) $9.42
D) none of the above