Question

Question Which is true of relative prices? (1 point) Responses They are prices set by buyers and sellers. They are prices set by buyers and sellers. - no response given They describe prices in relation to each other. They describe prices in relation to each other. - no response given They tell where the supply of a good meets its demand. They tell where the supply of a good meets its demand. - incorrect They help avoid shortages and surpluses. They help avoid shortages and surpluses. - no response given Incorrect:

Answer 1

The statement that is true of relative prices is: **They describe prices in relation to each other.**

Relative prices compare the price of one good or service to another, helping consumers and producers make decisions based on the opportunity cost of choices.