Your grandfather quit smoking cigarettes in 1995. When you ask him why he quit, you get a surprising answer. Instead of reciting the health benefits of quitting smoking, he says, "I quit because it was just getting too expensive. I started smoking in 1965 in Vietnam and cigarettes were only 45 cents a pack. The last pack I bought was $2.00 and I just couldn't justify spending more than four times as much on cigarettes as I used to."

1. In 1965, the CPI was 31.5. In 1995, the CPI was 152.4. While it is commendable that your grandfather quit smoking, what is wrong with his explanation?
2. What is the equivalent cost of a 1965 pack of cigarettes measured in 1995 prices?
3. What is the equivalent cost of a 1995 pack of cigarettes measured in 1965 prices?
4. Do both methods give you the same conclusion?