Answer:
The price of a movie in today’s terms would be $6.
The movie is more expensive today.
Step-by-step explanation:
We have been given that over a twenty-year period, the price of a movie rose from $3 to $8. Over the same period, the CPI doubled.
Since CPI is doubled over the same period, so price of movie ticket now should be 2 times the price of movie ticket before 20 years due to inflation.
[tex]\text{Expected movie price today}=2\times \$3\\\\\text{Expected movie price today}=\$6[/tex]
Therefore, the price of a movie in today’s terms would be $6.
Since the current movie price is $8, which is greater than $6 (expected movie price), therefore, the movie is more expensive today.
