Question

Today the price of a Jeep is $25,000. In 1970, the price was $5,000. What's the price relative?

Answer 1

The price relative is $500.

Explanation:

The price relative of a good or service involves comparing the current prices of goods and services with a previous year. it is the percent ratio of the two prices, the price relative can be obtained using equation 1.

Price relative = (Current price/previous price) x 100 .....................1

Given

Current price = $25,000

Previous price = $5,000

Price relative = ($25,000 / $5,000) x 100

price relative = $ 5 x 100

Price relative = $ 500

Therefore the price relative is $ 500

Answer 2

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 = $25,000

The price of a Jeep,in 1970 = $ 5,000

Relative Price means price of a good relative to other. Its a ratio of the two goods times 100.

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Hence the price relative is $500/-