Question

Harry Porter worked at a library in 1996. A day's work paid him $35. If the price index was 65 in 1996 and 160 in 2011, how much was Harry's daily wage in 1996 worth in 2011 prices? $42 b. $51 $86 d. It is too difficult to calculate, as Harry would have become much better at his job а. с.

Answer 1

Harry wage in 2011 = price index in 2011 / price index in 1996 * daily wage in 1996

= 160 * 35 / 65

= 86.15 ~ 86

Option C is the correct answer