The relative price of a good:
A)is always measured in current dollars.
B)is a measure of the relative share of the consumer's income devoted to its purchase.
C)reflects its price compared to prices of other goods.
D)is equal to the average price of the good over the last five years.

Question

Quizplus · Accepted Answer

The relative price of a good reflects its price compared to prices of other goods. It is a measure of how expensive the good is relative to other goods in the market.

The Relative Price of a Good