The Price of a New Textbook Is $120 in One

question 425

Multiple Choice

The price of a new textbook is $120 in one year and is $150 two years later, while the price of a used copy of the text increased from $40 to $60. The relative price of a new textbook

• A) increased from 3 to 4.5.
• B) decreased from 0.8 to 0.67.
• C) decreased from 3 to 2.5.
• D) remained constant.

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Definitions:

Direct Transfer

The movement of assets or funds from one type of account or investment vehicle directly to another without taking possession, often seen in IRA or 401(k) rollovers.

Share Certificates

Physical documents issued by a company that certify the holder is the owner of a specified number of shares in that company.

Sole Proprietorship

A business structure in which a single individual owns the company and is responsible for its debts and liabilities.

Double Taxation

A taxation principle referring to income taxes paid twice on the same source of earned income.