Answer:
Inflation adjusted price =$0.231
Explanation:
Inflation is the increase in the general price level. Inflation erodes the value of money.
This price index is the weighted average price of a basket of goods and services consumed by a typical consumer. It is used to measure the rate of inflation.
So we can determine the adjusted price as follows:
The inflation adjusted price
= current price × Price index in base year/Price index in current year
=$2.99 × 17/220
=$0.231
