Question

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

Answer 1

Answer: 1X = 5/7Y

Step-by-step 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