A WORKER EARNED 900 PER MONTH IN 1980 THE COST OF LIVING INDEX INCREASED BY 60% BETWEEN 1980 AND 1984 - Economics - Index Numbers

Question

A WORKER EARNED 900 PER MONTH IN 1980 THE COST OF LIVING INDEX
INCREASED BY 60% BETWEEN 1980 AND 1984 HOW MUCH EXTRA INCOME SHOULD
THE WORKER HAVE EARNED IN 1984 SO THAT HE COULD BUY SAME QUANTITIES
AS IN 1980

Vanita Rana · Accepted Answer

Dear Student,

Given:
Monthly income in 1980 = Rs 900
Increase on CPI = 60%
Extra income=60%×Monthly income in 1980                        =60100×900=Rs 540
Thus, the worker should have earned Rs 540 per month in 1984 in
order to buy same quantities as in 1980

A WORKER EARNED 900 PER MONTH IN 1980.THE COST OF LIVING INDEX INCREASED BY 60% BETWEEN 1980 AND 1984.HOW MUCH EXTRA INCOME SHOULD THE WORKER HAVE EARNED IN 1984 SO THAT HE COULD BUY SAME QUANTITIES AS IN 1980.