If,due to rising demand,the price of cotton rose 15 percent while the price of other goods and services rose an average of 10 percent,what would this imply about the price and output of cotton?
A) The relative price of cotton has risen, and one would expect the output of cotton to rise as a result.
B) The relative price of cotton has fallen, and one would expect the output of cotton to rise as a result.
C) The relative price of cotton has risen, and one would expect the output of cotton to fall as a result.
D) The relative price of cotton has fallen, and one would expect the output of cotton to fall as a result.
Correct Answer:
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