If the price of computers falls 6 percent during a period when the level of average prices falls 12 percent, the relative price of computers compared with other goods:

a) Stays the same.
b) Increases.
c) Decreases.
d) More information is required to answer this question.

0.94/0.88 = 1.068

Relative to other goods, computers become 6.8% higher.

To determine the relative price of computers compared with other goods, we need to compare the price change of computers to the average price change.

If the price of computers falls 6 percent and the level of average prices falls 12 percent, we can calculate the relative price change using the formula:

Relative price change = (Price change of computers - Average price change) / Average price change

Relative price change = (6% - 12%) / 12%
Relative price change = -6% / 12%
Relative price change = -0.5

Since the relative price change is negative, it means that the price of computers has decreased relative to other goods. Therefore, the answer is:

c) Decreases.

To determine the relative price of computers compared with other goods, we can look at the percentage change in the price of computers compared to the percentage change in the average prices.

Given that the price of computers falls 6 percent and average prices fall 12 percent, we can compare these two percentages to determine the relative price.

If the percentage change in the price of computers is less than the percentage change in average prices, it means that the relative price of computers has decreased. This is because the price of computers has fallen at a slower rate compared to the price decrease of other goods.

In this case, since the price of computers falls 6 percent and average prices fall 12 percent, the relative price of computers compared with other goods would decrease.

Therefore, the correct answer is c) Decreases.