The price of a kilowatt-hour of electricity in the U.S. in 2010 was $0.128 and in 2019 was $0.137. The consumer price index for the U.S. in 2010 was 218.1 and in 2019 was 255.6. The real price of a kilowatt-hour of electricity in 2010, using 2019 dollars was,
a. |
$0.109 |
|
b. |
$0.116 |
|
c. |
$0.117 |
|
d. |
$0.150 |
|
e. |
$0.161 |
Give information:
Tofind the relative real pricein 2010, we need to find the actral real price in both the years.
Therefore, real price in 2010 would be:
Hence, real price in 2010, using 2019 dollars would be:
Hence, the correct option is a. $0.109.
Get Answers For Free
Most questions answered within 1 hours.