Arlo is offered a job in Des Moines, where the CPI is 60, and a job in New York, where the CPI is 125. Arlo's job offer in Des M

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Arlo is offered a job in Des Moines, where the CPI is 60, and a job in New York, where the CPI is 125. Arlo's job offer in Des M

oines is for $48,000. How much does the New York job have to pay in order for the two salaries to represent the same purchasing power?

Social Studies

1 answer:

Anni [1.5K] · Answer 1 · 2026-03-09T05:47:36+03:00

Answer:

The answer is $100,000.

Explanation:

The CPI or the Consumer Price Index measures price changes through a consistent set of goods, which represents what consumers typically buy and utilize on a daily basis.

We can solve the question using the simple "rule of 3", noting that purchasing power is directly linked to the income and CPI of the relevant area. Therefore, we have:

(48000)/60= x/125

125(48000) = 60(x)

x = 100000

Thus, a job in New York would need to offer $100,000 for both salaries to reflect equal buying power.

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