Question

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

Answer 1

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 = $25,000

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.

$Price \ \ relative =\frac{25000}{5000}*100\\ \\ \ Price \ \ relative =5*100=500$

Hence the price relative is $500/-

Answer 2

Answer:

The price relative is  $500.

Step-by-step 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