Relative price refers to the price of a good or service in comparison to another good or service. It is a measure of the exchange ratio between two goods in a market. For example, if the price of apples is $2 per pound and the price of oranges is $3 per pound, the relative price of oranges in terms of apples would be 1.5 (3/2). It helps determine the opportunity cost of one good in terms of another and influences consumer choices and resource allocation.
Relative price refers to the price of a particular good or service in relation to the price of another good or service. It is a comparison between two or more prices, typically expressed as a ratio or percentage. Relative price helps in understanding the value of a good or service relative to other goods or services in the market. It is determined by factors such as supply and demand, market conditions, competition, and consumer preferences. The concept of relative price is used to analyze and make decisions in various areas, including economics, finance, and business.
