Other things being equal, when the money price of a good increases, its relative price
A) stays the same.
B) increases.
C) decreases.
D) falls to zero.

Name: Other things being equal, when the money price of a good increases, its relative price A) stays the same. B) increases. C) decreases. D) falls to zero.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When the money price of a good increases, its relative price also increases. This is because the price of the good is now higher in relation to other goods and services in the economy.

Other Things Being Equal, When the Money Price of a Good