The price of a new car is $40,000 while the price of a five-year old car of the same brand is $16,000. The next year the price of the new car increases to $44,000 and the price of a five-year old car of the same brand is $17,600. The relative price of the used car
A) decreased by $2,400.
B) decreased by 10 percent.
C) increased by 10 percent.
D) remained constant at 0.4.

Question

Quizplus · Accepted Answer

The relative price of the used car is calculated as the price of the used car divided by the price of the new car. Initially, it is $16,000 / $40,000 = 0.4. The next year, it is $17,600 / $44,000 = 0.4. Thus, the relative price remained constant at 0.4.

The Price of a New Car Is $40,000 While the Price