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Calculate the price relative

Calculate The Price Relative class=

Sagot :

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Answer:

146.3

Step-by-step explanation:

The price relative is the product of 100 and ratio of the current price to the base price. It is given as:

[tex]Price\ relative=\frac{P_n}{P_o}*100\\\\Where\ P_n\ is\ the \ price\ of\ commodity\ in\ the\ current\ period\ while\ P_o\ is\\the\ price\ of\ commodity\ in\ base\ period.[/tex]

Given that the base price is the truck cost in 2008 = $27000 and the current price is the price of the truck in 2012 = $39500. Hence:

Price relative = ($39500 / $27000) * 100 = 146.3

Therefore the price relative is 146.3

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