The price of a new textbook is $60 in one year and $75 two years later, while the price of a used copy of the textbook increased from $25 to $37.50. The relative price of a new textbook

A. increased by 25 percent.
B. decreased from 1.4 to 1.25.
C. increased from 2.4 to 3.
D. decreased from 2.4 to 2.0.


Answer: D

Economics

You might also like to view...

If the CPI decreases from one year to the next, then the inflation rate is

A) negative. B) 0. C) below 100. D) above 100. E) positive.

Economics

Suppose that P × Y is $5,000 million a year and the quantity of money is $500 million. Then the velocity of circulation is

A) 50. B) 10. C) 500. D) 20. E) 2,500,000.

Economics

Rising prices of resources leads to inefficient resource use by industry

a. True b. False Indicate whether the statement is true or false

Economics

If the equation of exchange is MV = PY the Y represents:

A. nominal GDP. B. economic growth. C. potential output. D. real GDP.

Economics