Answer:
C) The person living in Anchorage has $50.80/CPI more than the person in Minneapolis.
Step-by-step explanation:
The Consumer Price Index (CPI) weighs the average prices of a basket of consumer goods and services. So the higher the CPI, the more expensive it is to purchase goods or services in that place.
The purchasing power of someone living in Minneapolis and earning $42,500 is $245.66/CPI; for someone living in Anchorage and earning $67,000 is $296.46/CPI. The difference between them is $296.46/CPI minus $245.66/CPI equals $50.80/CPI.
The person living in Anchorage has $50.80/CPI more than the person in Minneapolis.