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Suppose There Are Only Two Goods: Bread and Wine

Question 28

Multiple Choice

Suppose there are only two goods: bread and wine.In Mexico,the absolute price of wine is 30 pesos per bottle.If the relative price of wine in terms of bread is 5 loaves per bottle,then the absolute price of bread is


A) 5 pesos per loaf.
B) 6 pesos per loaf.
C) 25 pesos per loaf.
D) 150 pesos per loaf.

Correct Answer:

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