When the price of only one good rises, the relative price of that good
A) falls.
B) rises.
C) does not change.
D) rises if it is a normal good and falls if it is an inferior good.

Question

Quizplus · Accepted Answer

The relative price of a good is its price in relation to other goods. If the price of only one good rises, it becomes relatively more expensive compared to other goods. Therefore, the relative price of that good rises.

When the Price of Only One Good Rises, the Relative