When the price of a good decreases more slowly than an index of average prices decreases,the good's relative price
A)Has risen while its absolute price has fallen.
B)And its absolute price have risen.
C)And its absolute price have fallen.
D)Has fallen while its absolute price has risen.

Question

Quizplus · Accepted Answer

When the price of a good decreases more slowly than an index of average prices, it means that the price of the good has fallen but not as much as other prices in the market. This implies that the good's relative price has increased (compared to other goods) even though its absolute price has fallen.

When the Price of a Good Decreases More Slowly Than