Today the price of a Jeep is $25,000. In 1970, the price was $5,000. What's the price relative?
Accepted Solution
A:
Solution:we are given with Today the price of a Jeep is $25,000. In 1970, the price was $5,000.So we can write The price of a Jeep, today = $25,000The price of a Jeep,in 1970 = $ 5,000Relative Price means price of a good relative to other. Its a ratio of the two goods times 100.[tex] Price \ \ relative =\frac{25000}{5000}*100\\ \\ \ Price \ \ relative =5*100=500\\ \\ [/tex]Hence the price relative is $500/-