1. What is inflation?
2. What is deflation?
3. What is the Consumer Price Index?

Use the following (Price Today x CPI Old Year/CPI Today) to solve questions 4-7: Consumer Price Index

1. James went to AMC theaters before it decided to charge based on seats (CRAZY!!!), and paid $15.00 for a movie ticket. However, he wants to know what the price of a movie ticket would be in 1980?
2. Cindy is pumping gasoline at ExxonMobil and saw that the price is $4.59 per gallon. She is curious to see if she is overpaying or underpaying today. Gasoline prices in the 1980s were $1.03 per gallon. How much should a gallon of gasoline be today?
3. Oscar works at Jamba Juice and gets paid California state minimum wage of $16.00 per hour. However, in the 1970s, the minimum wage was $1.60 per hour. Is Oscar better or worse off today compared to the California state minimum wage of $16.00 per hour? How about compared to the federal minimum wage of $7.25?
4. Tammy is a Toyota fan and remembers in 2000 the price of a Camry was priced $26,198. She is wondering if the price of a Camry is about the same based on inflation? What should the price of a new Toyota Camry be today?