Which of the following will definitely cause a change in the relative prices of two goods?
A) An increase in the average price of the two goods
B) Nominal price changes for the two goods adjusted for inflation
C) Different rates of change in the prices of the two goods
D) A decrease in the average price of the two goods

Question

Quizplus · Accepted Answer

Different rates of change in the prices of the two goods will definitely cause a change in their relative prices. The other options may or may not cause a change in relative prices.

Which of the Following Will Definitely Cause a Change in the Relative