If the Relative Price of One Unit of Good Y

question 100

Multiple Choice

If the relative price of one unit of good Y is 0.25 units of good Z, then it follows that the absolute price of good Z can be __________ and the absolute price of good Y can be __________.

• A)$4,000; $2,000
• B)$1,000; $2,000
• C)$2,000; $1,000
• D)$1,000; $250

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Definitions:

State And Local Governments

The regional and municipal levels of government within a country, responsible for local decision making and public services.

Social Regulation

Rules imposed by government to correct market failures and promote social welfare, often relating to health, safety, and the environment.

Decreases Product Innovation

A situation where there is a decline in the introduction of new products or improvements to existing ones, often due to market conditions or external constraints.

Increases Competition

A market condition where there is a rise in the number of firms or the level of competition, leading to greater choice and potentially lower prices for consumers.