Question

Movie 1 grossed $233M at the box office. Movie 2 (2019) grossed $858M.  Consider the following information...

Movie 1 grossed $233M at the box office. Movie 2 (2019) grossed $858M.  Consider the following information for the consumer price index:

Year CPI
1972 43
2000 170
2019 256

In terms of 2000 dollars, the inflation adjusted grosses for Movie 1 is ?

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Answer #1

CPI in 2000 = 170

CPI in 2019 = 256

The inflation rate is the percentage change in the value of consumer price index. So,

So, the inflation between 2000 and 2019 is 50.588%.

It is given that the movie 1 grossed $233 million in 2019. So, the inflation adjusted grosses for movie 1 in 2000 dollars is calculated below:

Let X is the earning of movie 1 in 2000.

So, the grosses of movie 1 in terms of 2000 dollars is $154.73.

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