An increase in the relative price of a good cannot be caused by
A) an increase in the nominal price of the good that is greater than the increase in the nominal price of the other good.
B) a decrease in the nominal price of the good that is less than the decrease in the nominal price of the other good.
C) a decrease in the nominal price of the other good while the price of the good itself remains constant.
D) an increase in the nominal price of the other good while the price of the good itself remains constant.
Answer: D
You might also like to view...
All of the following conditions must exist for the median-voter theorem to hold except that:
A. candidates win by majority vote. B. the policy being voted on must be uncontroversial. C. there is a single one-dimensional policy question. D. there are only two candidates.
After a fruitless two-year search for a job, a former executive gives up and decides to live off the land in the Rocky Mountains. This former executive is considered
A. Structurally unemployed. B. One of the phantom unemployed. C. A discouraged worker. D. Underemployed.