Relative price

Relative price

Relative price is the price of a commodity such as a good or service in terms of another; ie, the ratio of two prices. A relative price may be expressed in terms of a ratio between any two prices or the ratio between the price of one particular good and a weighted average of all other goods available in the market. A relative price is an opportunity cost. Microeconomics can be seen as the study of how economic agents react to changes in relative prices.

ee also

*Price

External links

* [http://www.scopulus.co.uk/business-jargon/readks3jfn9ei7dn2fms8lkfialf777slf8m2fh4ei6w.php?title=Relative%20Cost Jargon Explained]


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