Question

The relative price of good X is 5 units of good Y. It follows that the absolute price of good X can be ______________ and the absolute price of good Y can be ___________.

Answer 1

Answer:

$40,000 and $8,000

Explanation:

Relative price of good X is 5 units of good Y. The absolute value of good X is $40,000. Absolute value is the original value of a good while relative value is based on price of some identical or similar good. The absolute value of good Y is $8,000.