In 1983, a cast-iron pan cost $28.35. Today, a cast-iron pan costs $52.95. If the CPI is 166, what is the percent relation of the actual price of a cast-iron pan to the expected price?

Use the CPI to estimate the expected price: $28.35 × 1.66 = $47.06. The actual price is $52.95, which is $5.89 above the expected price. Since $5.89 ÷ $47.06 ≈ 0.125, the actual price is about 12.5% higher than expected, so the correct choice is “The actual price is 12.5% higher than the expected price.”

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