If the relative price of S in terms of T is 2 and S has a nominal price of $1,then the relative price of T is
A)$2.
B)50 cents.
C)1/2 S.
D)Need more information to answer.

Question

Quizplus · Accepted Answer

The relative price of T in terms of S is the reciprocal of the relative price of S in terms of T. Since the relative price of S in terms of T is 2, the relative price of T in terms of S is 1/2 S.

If the Relative Price of S in Terms of T