Price Relative Calculation:

To calculate the price relative, we need to compare the price of a commodity in two different years. In this case, we are comparing the price of a commodity in the years 1975 and 1980.

The price of the commodity in 1975 was 25, and in 1980 it was 30. To calculate the price relative, we will take the price of the commodity in 1980 as the base year.

Price Relative Formula:
Price Relative = (Price in the Given Year / Price in the Base Year) * 100

Now let's calculate the price relative using the given data:

Price in 1975 = 25
Price in 1980 = 30 (Base Year)

Price Relative = (30 / 30) * 100 = 100

The price relative between the years 1975 and 1980 is 100. This means that the price of the commodity remained constant when comparing it to the base year, which is 1980.

Explanation:

The price relative is a measure that compares the price of a commodity in a given year to the price of the same commodity in a base year. It provides a relative measure of how the price has changed over time.

In this case, the base year is 1980, and we are comparing the price of the commodity in 1975. The price relative is calculated by dividing the price in the given year by the price in the base year and multiplying it by 100.

A price relative of 100 indicates that the price of the commodity has remained the same when compared to the base year. If the price relative is greater than 100, it means that the price has increased, and if it is less than 100, it means that the price has decreased.

In this case, the price relative is 100, suggesting that the price of the commodity in 1975 was the same as the price in the base year, 1980.

Conclusion:

The price relative of the commodity between the years 1975 and 1980 is calculated to be 100. This indicates that the price of the commodity remained constant when comparing it to the base year, which is 1980.