Changes in relative prices may occur
A)Only in periods of stable prices.
B)Only in periods of inflation or deflation.
C)In periods of stable prices or in periods of inflation or deflation.
D)In none of the other choices.

Question

Quizplus · Accepted Answer

Relative prices can change in periods of stable prices due to changes in supply and demand factors or technological advancements, and in periods of inflation or deflation due to changes in the overall price level. Therefore, option C is the most appropriate choice.

Changes in Relative Prices May Occur