In 1970 a gallon of gas cost $0.36, and the CPI was 38.8.
    Today the CPI is 258.7. If a gallon of gas sells for $1.95, what is its real price in 1970 dollars?

1)B)If, under current conditions, the equilibrium quantity of oil has fallen, then which side of the market has had a stronger influence, supply or demand?

Answer rating: 100% (QA)

1 Convert the current gas price 195 to a price index using the current CPI 2587 Pr... View the full answer