The price of a new car is $20 000 while the price of a five-year old car of the same brand is $8 000.The next year the price of the new car increases to $22 000 and the price of a five-year old car of the same brand is $8 800.The relative price of the used car

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The relative price of the used car is the ratio of the price of the used car to the price of the new car. In the first year, the relative price of the used car is 8000/20000 = 0.4. In the second year, the relative price of the used car is 8800/22000 = 0.4. Therefore, the relative price of the used car remained constant at 0.4.

The Price of a New Car Is $20 000 While