Suppose the price of coffee is $3 each, the price of bagels is $2 each and a person's budget is $40. The relative price of coffee is
A) 1.5 bagels.
B) 2/3 of a bagel.
C) 13.33 bagels.
D) 20 bagels.

Question

Quizplus · Accepted Answer

The relative price of coffee is the number of bagels that can be bought for the same price as one coffee. In this case, the relative price of coffee is 3/2 = 1.5 bagels.

Suppose the Price of Coffee Is $3 Each, the Price