Respuesta :
Answer:
1.4
Decreases
Explanation:
The question is incomplete. Here is the complete question:
In her school's food court, Jamie notices that a carton of juice costs $1.75 and a can of soda costs $1.25. Since Jamie just finished studying for an economics exam, she immediately calculates that the relative price of a carton of juice is a) 2/1.5/1.4/1.3 Suppose that school administrators want to encourage healthy choices and decide to impose a $0.25 price increase on cans of soda. Given that the absolute price of a carton of juice is unchanged, the relative price of a carton of juice d) increases/decreases
Relative price is the price of a good in terms or another good.
The relative price of carton of juice before the price increase = price of carton of juice / price of can of beer = $1.75 / $.125 = 1.4
The new price of a can of beer after the school adminsitrators increase its price = $1.25 + $0.25 = $1.50
The relative price = $1.75 / $1.50 = 1.167
We can see that the relative price decreased after the increase in the price of a can of beer.
I hope my answer helps you
