Question

The price of good X is $50 and the price of good Y is $30. It follows that the relative price of one unit of X is ________ and the relative price of one unit of Y is ________.

Answer 1

1.67 units of good Y

0.6 units of good X

Step-by-step explanation:

Relative price measures the price of a good in relation to another good. It is also known as the real price of a good.

The relative price of good X = $50 / $30 = 1.67

The relative price of good Y = $30 / $50 = 0.6

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