Question

Today the price of a Jeep is $25,000. In 1970, the price was $5,000. What's the price relative? A. $500 B. $166 C. $600 D. $550

Answer 1

Answer:

The correct answer is letter "A": $500.

Explanation:

The relative price is the ratio between one amount and the other. For mathematical purposes, the ratio is expressed 100 times.

Price relative=(Price A)/(Price B)  x 100

• Price of the Jeep today (A): $25000
• Price of the Jeep in 1970 (B): $5000

- Price relative=$25000/$5000  x 100

- Price relative=$500

Thus, the price relative is $500.