Which is true of relative prices? Choose one answer.
A.
They are prices set by buyers and sellers.
B.
They describe prices in relation to each other.
C.
They tell where the supply of a good meets its demand.
D.
They help avoid shortages and surpluses.
B. They describe prices in relation to each other.
The correct answer is B. They describe prices in relation to each other. Relative prices refer to the prices of goods and services in comparison to each other. They provide information about the value of one good or service in relation to another and reflect the scarcity and demand for each item.
The correct answer is B.
Relative prices refer to prices in relation to each other. They compare the prices of different goods or services and provide information about the value or worth of those goods or services compared to each other.
To determine relative prices, you can compare the prices of different goods or services in the market. You can do this by researching the prices of similar goods or services and noting the differences in their pricing. This can be done by visiting different sellers, checking online marketplaces or shopping platforms, or consulting price comparison websites. By comparing the prices of different goods or services, you can identify their relative prices and understand which is more expensive or more affordable in relation to others.