1. What is a Relative Price Calculator for Kids?

Definition: This calculator helps kids understand how prices change over time by comparing new and old prices.

Purpose: It teaches children about price changes, inflation, and basic financial concepts in a simple way.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( RP \) — Relative Price (dimensionless)
• \( P_{new} \) — New price (currency, e.g., USD)
• \( P_{old} \) — Old price (currency, e.g., USD)

Explanation: The new price is divided by the old price to show how much more (or less) expensive something has become.

3. Understanding Relative Price

Details:

• RP = 1 means no change in price
• RP > 1 means the price increased
• RP < 1 means the price decreased

4. Using the Calculator

Tips: Enter both prices in the same currency (like USD). The calculator works best when comparing prices from different times.

5. Frequently Asked Questions (FAQ)

Q1: What does a relative price of 1.5 mean?
A: It means the new price is 1.5 times the old price, or 50% more expensive.

Q2: Can I compare prices from different countries?
A: Yes, but first convert both prices to the same currency using current exchange rates.

Q3: Why is relative price important?
A: It helps us understand how prices change over time, which is called inflation when prices go up.

Q4: How can kids use this information?
A: Kids can compare prices of toys, games, or candy from different years to see how prices change.

Q5: What if I get a number less than 1?
A: That means the price decreased! For example, 0.8 means the new price is only 80% of the old price.