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    Computation of change in price

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    Question 4 :
    In 2006, the absolute price of tea was $12 a pound and the absolute price of a Honda Civic was $16,000. In 2007, the absolute price of tea rose to $15 per pound and the absolute price of a Honda Civic rose to $24,000. Did the relative price of tea in terms of Civics increase or decrease? What about the relative price of Civics in terms of tea?

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    https://brainmass.com/economics/absolute-advantage/computation-change-price-162211

    Solution Preview

    Change in the price of tea= $15-$12=$3
    Percentage change in the price of tea= Change/Original price= ...

    Solution Summary

    This explains the steps of computation of change in price relative price

    $2.19