Ask Question
21 October, 23:09

If the absolute price of good X is $10 and the absolute price of good Y is $14, then what is (a) the relative price of good X in terms of good Y and (b) the relative price of good Y in terms of good X.

+4
Answers (1)
  1. 21 October, 23:19
    0
    1X = 5/7Y

    1Y = 7/5Y

    Explanation:

    Relative price of product of X in terms of product Y is the price of product X expressed a fraction of product of Y, that is $10/$14=5/7, and it is expressed in standard terms 1X=5/7Y

    The relative price of product Y in terms of product X is $14/$10=7/5 and also can be expressed in standard format as IY=7/5Y

    All in all, product the relative price of product Y seems to be higher than the relative price of product x
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “If the absolute price of good X is $10 and the absolute price of good Y is $14, then what is (a) the relative price of good X in terms of ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers