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) increased from 2.4 to 3.
C) decreased from 2.4 to 2.0.
D) decreased from 1.4 to 1.25.


Answer: C

Economics

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The reserve ratio is 20 percent. The Fed buys $1 million in government securities from a bond dealer by transmitting the funds to the dealer's deposit account at Bank A Bank A loans the maximum amount possible to a construction company, which buys materials from a lumber yard. The lumberyard deposits the construction company's check in Bank B. What is the maximum loan Bank A can now make and the maximum loan Bank B can now make?

A) Bank A: 0; Bank B: $640,000 B) Bank A: 0; Bank B: $800,000 C) Bank A: $800,000; Bank B: $640,000 D) Bank A: $800,000; Bank B: 0

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The price elasticity of supply is higher when

A) the number of producers in the market increases over time. B) the product in question is a complementary good. C) the number of buyers in the market increases. D) producers have less time to adjust to price changes.

Economics

A trough in the business cycle:

a. The natural rate of unemployment is at a minimum point b. Structural and frictional unemployment are at their highest levels c. Employment and output reach their lowest levels d. Cyclical unemployment is at a minimum point

Economics

The stock market crash of 1929 led to:

A. the Great Depression. B. the Great Recession. C. Black Thursday. D. the South Seas bubble burst.

Economics