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Agriculture Economics QUESTION #11857
Question 1
An 'absolute price' differs from a 'relative price' in that a relative price is expressed as:
  • A price in a foreign currency
  • The ratio of one good's price to another good's price✔️
  • The price adjusted for inflation only
  • The government-set minimum price
Correct Answer Explanation
Relative price expresses one good's price in terms of another good, i.e., a price ratio.