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In 1979, in the Face of Rising Competition in the Fast

Question 25

Multiple Choice

In 1979, in the face of rising competition in the fast food hamburger market, McDonald's reduced the price of its cheeseburger to $0.43. If the CPI in 1979 was 37.2 and the CPI in 2005 was 100, what is the price of a 1979 cheeseburger in 2005 dollars?


A) $0.77
B) $7.36
C) $1.16
D) $0.43
E) $0.14

Correct Answer:

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