The ratio of a new price to the base year price is called the___________?
Correct answer: D. Price relative
- A. Price decrease
- B. Price absolute
- C. Price increase
- D. Price relative
Explanation
A price relative compares a commodity's price in the new period with its price in the base period, usually written as Pn/Po × 100. It measures the percentage level of the new price relative to the base price.
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