If the money price of hats rises and no other prices change, the
I. relative price of a hat rises.
II. opportunity cost of a hat rises.

Question

Quizplus · Accepted Answer

Both statements are correct. When the money price of hats rises and no other prices change, the relative price of a hat compared to other goods increases, meaning you have to give up more of other goods to obtain a hat, which directly leads to an increase in the opportunity cost of acquiring a hat.

If the Money Price of Hats Rises and No Other