If the price of iPods rises 10 percent during a year when the level of average prices rises 3 percent,the relative price of iPods compared with other goods
A)Remains constant.
B)Increases.
C)Decreases.
D)More information is required to answer this question.

Question

Quizplus · Accepted Answer

The relative price of iPods compared to other goods increases since its price rose 10% while the level of average prices only rose 3%.

If the Price of IPods Rises 10 Percent During a Year