It is possible for the absolute price of a good to rise at the same time that the good is becoming relatively cheaper.

Question

Quizplus · Accepted Answer

This is because the absolute price of a good may rise due to inflation or other market factors while the relative price, which is determined by comparing the price of the good to the prices of other goods, may decrease. For example, if the price of milk increases from $3 to $4 per gallon, but the price of other goods increases faster, the relative price of milk would decrease even though the absolute price increased.

It Is Possible for the Absolute Price of a Good