The relative price of a smartphone is
A) the money price of the smartphone divided by the money price of some other good.
B) the price of the smartphone compared with what students think it should cost.
C) the amount it cost to make the smartphone.
D) what the company earned for selling the smartphone.

Question

Quizplus · Accepted Answer

The relative price of a smartphone is the ratio of the money price of the smartphone to the money price of some other good, also referred to as the opportunity cost. It represents the amount of other goods that must be given up in order to purchase the smartphone.

The Relative Price of a Smartphone Is