The Price of a New Textbook Increased by 25 Percent

question 408

Multiple Choice

The price of a new textbook increased by 25 percent and the price of a used textbook increased by 30 percent. What happened to the relative price of the new textbook?

• A)It increased by 5 percent.
• B)It increased, but we can't tell by how much without more information.
• C)It decreased by 5 percent.
• D)It decreased, but we can't tell by how much without more information.

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Definitions:

Budgeted Balance Sheet

A budgeted balance sheet is a financial statement that projects the financial position of a company at a future point in time, detailing assets, liabilities, and equity based on anticipated financial activities.

Financial Budgets

Projections of a company's income, expenditures, and capital needs, used to manage spending and achieve financial goals.

Capital Expenditures Budget

A budget allocation for purchasing and investing in long-term assets and projects.

Minimum Cash Balance

The lowest level of cash that a company or individual aims to maintain to meet operational and emergency needs.