If the price of motel rooms increases by 10% while the prices of other goods and services increase by 5% on average, the relative price of motel rooms has:
A)increased.
B)decreased by 5%.
C)decreased by 10%.
D)remained constant.

Question

Quizplus · Accepted Answer

The relative price of motel rooms has increased because the price of motel rooms has increased by 10%, which is higher than the average increase of 5% for other goods and services.

If the Price of Motel Rooms Increases by 10% While