The Price of One Good Divided by the Price of Another

question 35

Multiple Choice

The price of one good divided by the price of another good is called a

• A)marginal price.
• B)money price.
• C)absolute price.
• D)relative price.
• E)ceteris paribus price.

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Definitions:

Subsidizes

Financial aid supplied by the government to an industry or business so that the price of a commodity or service may remain low or competitive.

Steel

A hard, strong alloy made primarily of iron and carbon, used extensively in construction and manufacturing.

Substitutes

Goods or services that can be used in place of each other, where an increase in the price of one leads to an increase in the demand for the other.

Demand

The measure of a good or service that patrons are eager and able to procure, across various pricing, throughout a certain duration.