Suppose the price of chocolate chip cookies is $4.00 per pound and the price of a slice of cake is $2.00 per slice. The relative price of cake in terms of cookies is
A) 1/2 pound of cookies per cake.
B) 2 pounds of cookies per cake.
C) 1/2 slice of cake per cookie.
D) 2 slices of cake per cookie.

Question

Quizplus · Accepted Answer

The relative price of cake in terms of cookies is calculated by dividing the price of a slice of cake by the price of a pound of cookies: $2.00 / $4.00 = 0.5. This means 1/2 pound of cookies per slice of cake.

Suppose the Price of Chocolate Chip Cookies Is $4