Twenty years ago a stove cost $300 and a refrigerator cost $1,500. Today a stove costs $600, while a refrigerator costs $1,800. Which of the following statements is true?

Question

Quizplus · Accepted Answer

The relative price of a stove has increased because 20 years ago, you could buy 5 stoves for the price of one refrigerator ($300 x 5 = $1,500), but today, you can only buy 3 stoves for the price of one refrigerator ($600 x 3 = $1,800). This indicates that stoves have become relatively more expensive compared to refrigerators.

Twenty Years Ago a Stove Cost $300 and a Refrigerator