Use the gasoline price index from Table 1. Briefly explain your reasoning in each case.

Using the 1980 price as the reference value, the gasoline price index for 1998 is 0.9. What was the cost of a gallon of gasoline in 1998?

Data From Table 1:-

Transcribed Image Text:

TABLE 1 Average Gasoline Prices (per gallon) Year Price Price as a percentage of 1980 price Price index (1980 = 100) 1960 $0.31 25.4% 25.4 1970 $0.36 29.5% 29.5 1980 $1.22 100.0% 100.0 1990 $1.23 100.8% 100.8 2000 $1.56 127.9% 127.9 2010 $2.84 232.8% 232.8