From 1970 to 1990, the consumer price index (cpi) increased from 38.8 to 130.7. if a tube of toothpaste cost $0.77 in 1970 and the price of toothpaste increased at the same rate as the cpi from 1970 to 1990, by approximately how much did the price of a tube of toothpaste increase from 1970 to 1990?

Increase in the price of toothpaste is $1.82

Step-by-step explanation:

As we know the formula of consumer price index

Here P1 = Current price of the the product

P = Price of the product in the base year

Now we will plug in the values for year 1970

---------(1)

Similarly for year 1990

------------(2)

Now we will divide equation 2 from 1.

Therefore price of toothpaste in year 1990 will be = $2.59

Since in 1970 price of toothpaste was = $0.77

So change in price from 1970 to 1990 = 2.59 - 0.77 = 1.82

Increase in the price of a tube of toothpaste will be $1.82

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step-by-step explanation: