Share
Explore BrainMass

Computation of change in price

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?

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