If the absolute price of good X is $10 and the absolute price of good Y is $14, the relative price of good X in terms of good Y

Question

enot [183]

3 years ago

8

If the absolute price of good X is $10 and the absolute price of good Y is $14, the relative price of good X in terms of good Y

is

Business

1 answer:

elixir [45] · Answer 1 · 2022-06-22T13:06:32+03:00

elixir [45]3 years ago

3 0

Answer: 1X = 5/7Y

Explanation:

Relative price is the price of a particular good when such good is being compared with another good. The relative price of good X in terms of good Y will be:

= Absolute price of X / Absolute price of Y

= 10/14

= 5/7

Therefore, 1X = 5/7Y