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Homework answers / question archive / What is the term that describes the price of one good in terms of another good?
What is the term that describes the price of one good in terms of another good?
The term that is used to describe the price of one good in terms of another good is called Relative Price. In other words, the relative price is the ratio of the prices of two goods available in the market. Relative price is an opportunity cost because it tells how many units of one good a person has to sacrifice to obtain the units of other good within the same income.