The price of a new textbook increased from $100 to $120 in one year, while the price of a used textbook increased by 10 percent. What happened to the relative price of a used textbook?
A. It remained constant.
B. It increased by 10 percent.
C. It decreased by 20 percent.
D. It can't be determined without knowing the nominal price of the used textbook in at least one of the years.
Answer: D
You might also like to view...
What are the three limitations on human rationality that behavioral economics emphasizes?
What will be an ideal response?
One of the negative side effects of financial globalization is that national economic policies lack the discipline that they did in the past
Indicate whether the statement is true or false
If the inverse demand curve a monopoly faces is p = 100 - 2Q, then profit maximization
A) is achieved when 25 units are produced. B) is achieved by setting price equal to 25. C) is achieved only by shutting down in the short run. D) cannot be determined solely from the information provided.
What is meant by an asset bubble?