The relative price.

Question

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Answer 1

Question

Chapter 3, Problem 1SPA

To determine

The relative price.

Expert Solution & Answer

Explanation of Solution

Given information:

It is given that the money price of a carton of milk is $2.01 and a gallon of gasoline is $3.63.

The relative price is the ratio of the price of a commodity expressed in terms of another commodity. The relative price of gallon in terms of milk can be calculated using the equation (1).

Relative price of gasoline=Money price of gasoline Money price of milk (1)

Substitute the respective values in equation (1), the relative price of gasoline in terms of milk.

Relative price of gasoline=3.63 2.01=1.81

Thus, the relative price of gasoline in terms of milk is $1.81.

Economics Concept Introduction

Money price: Money price is known as the price of a good in dollar terms.

Relative price: Relative price is known as the price of one good expressed as ratio of another good.

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Answer 2

Question

Chapter 3, Problem 1SPA

To determine

The relative price.

Expert Solution & Answer

Explanation of Solution

Given information:

It is given that the money price of a carton of milk is $2.01 and a gallon of gasoline is $3.63.

The relative price is the ratio of the price of a commodity expressed in terms of another commodity. The relative price of gallon in terms of milk can be calculated using the equation (1).

Relative price of gasoline=Money price of gasoline Money price of milk (1)

Substitute the respective values in equation (1), the relative price of gasoline in terms of milk.

Relative price of gasoline=3.63 2.01=1.81

Thus, the relative price of gasoline in terms of milk is $1.81.

Economics Concept Introduction

Money price: Money price is known as the price of a good in dollar terms.

Relative price: Relative price is known as the price of one good expressed as ratio of another good.

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Answer 3

Question

Chapter 3, Problem 1SPA

To determine

The relative price.

Expert Solution & Answer

Explanation of Solution

Given information:

It is given that the money price of a carton of milk is $2.01 and a gallon of gasoline is $3.63.

The relative price is the ratio of the price of a commodity expressed in terms of another commodity. The relative price of gallon in terms of milk can be calculated using the equation (1).

Relative price of gasoline=Money price of gasoline Money price of milk (1)

Substitute the respective values in equation (1), the relative price of gasoline in terms of milk.

Relative price of gasoline=3.63 2.01=1.81

Thus, the relative price of gasoline in terms of milk is $1.81.

Economics Concept Introduction

Money price: Money price is known as the price of a good in dollar terms.

Relative price: Relative price is known as the price of one good expressed as ratio of another good.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 3, Problem 1SPA

To determine

The relative price.

Expert Solution & Answer

Explanation of Solution

Given information:

It is given that the money price of a carton of milk is $2.01 and a gallon of gasoline is $3.63.

The relative price is the ratio of the price of a commodity expressed in terms of another commodity. The relative price of gallon in terms of milk can be calculated using the equation (1).

Relative price of gasoline=Money price of gasoline Money price of milk (1)

Substitute the respective values in equation (1), the relative price of gasoline in terms of milk.

Relative price of gasoline=3.63 2.01=1.81

Thus, the relative price of gasoline in terms of milk is $1.81.

Economics Concept Introduction

Money price: Money price is known as the price of a good in dollar terms.

Relative price: Relative price is known as the price of one good expressed as ratio of another good.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 3, Problem 1SPA

To determine

The relative price.

Expert Solution & Answer

Explanation of Solution

Given information:

It is given that the money price of a carton of milk is $2.01 and a gallon of gasoline is $3.63.

The relative price is the ratio of the price of a commodity expressed in terms of another commodity. The relative price of gallon in terms of milk can be calculated using the equation (1).

Relative price of gasoline=Money price of gasoline Money price of milk (1)

Substitute the respective values in equation (1), the relative price of gasoline in terms of milk.

Relative price of gasoline=3.63 2.01=1.81

Thus, the relative price of gasoline in terms of milk is $1.81.

Economics Concept Introduction

Money price: Money price is known as the price of a good in dollar terms.

Relative price: Relative price is known as the price of one good expressed as ratio of another good.

Answer 6

Chapter 3, Problem 1SPA

To determine

The relative price.

Expert Solution & Answer

Explanation of Solution

Given information:

It is given that the money price of a carton of milk is $2.01 and a gallon of gasoline is $3.63.

The relative price is the ratio of the price of a commodity expressed in terms of another commodity. The relative price of gallon in terms of milk can be calculated using the equation (1).

Relative price of gasoline=Money price of gasoline Money price of milk (1)

Substitute the respective values in equation (1), the relative price of gasoline in terms of milk.

Relative price of gasoline=3.63 2.01=1.81

Thus, the relative price of gasoline in terms of milk is $1.81.

Economics Concept Introduction

Money price: Money price is known as the price of a good in dollar terms.

Relative price: Relative price is known as the price of one good expressed as ratio of another good.

Answer 7

Chapter 3, Problem 1SPA

To determine

The relative price.

Answer 8

Expert Solution & Answer

Explanation of Solution

Given information:

It is given that the money price of a carton of milk is $2.01 and a gallon of gasoline is $3.63.

The relative price is the ratio of the price of a commodity expressed in terms of another commodity. The relative price of gallon in terms of milk can be calculated using the equation (1).

Relative price of gasoline=Money price of gasoline Money price of milk (1)

Substitute the respective values in equation (1), the relative price of gasoline in terms of milk.

Relative price of gasoline=3.63 2.01=1.81

Thus, the relative price of gasoline in terms of milk is $1.81.