Relative price

relative pricesrelativerelative-price effect
A relative price is the price of a commodity such as a good or service in terms of another; i.e., the ratio of two prices.wikipedia
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Price

market pricepricesretail price
A relative price is the price of a commodity such as a good or service in terms of another; i.e., the ratio of two prices.
Use value was supposed to give some measure of usefulness, later refined as marginal benefit while exchange value was the measure of how much one good was in terms of another, namely what is now called relative price.

Microeconomics

microeconomicmicroeconomic theoryprice theory
Microeconomics can be seen as the study of how economic agents react to changes in relative prices, and of how relative prices are affected by the behavior of those agents.
One goal of microeconomics is to analyze the market mechanisms that establish relative prices among goods and services and allocate limited resources among alternative uses.

Price premium

premium pricingprice premiums
Indeed, price premium – also known as relative price – is a commonly used metric among marketers and senior managers.

Inflation

inflation rateprice inflationfood inflation
Often inflation makes it difficult for economic agents to immediately distinguish increases in the price of a good which are due to relative price changes from changes in the price which are due to inflation of prices in general. This situation can lead to allocative inefficiency, and is one of the negative effects of inflation.
;Allocative efficiency: A change in the supply or demand for a good will normally cause its relative price to change, signaling the buyers and sellers that they should re-allocate resources in response to the new market conditions.

Goods

goodeconomic goodcommodity
A relative price is the price of a commodity such as a good or service in terms of another; i.e., the ratio of two prices.

Service (economics)

servicesserviceBusiness Services
A relative price is the price of a commodity such as a good or service in terms of another; i.e., the ratio of two prices.

Market basket

basketconsumer basketbaskets of goods
A relative price may be expressed in terms of a ratio between the prices of any two goods or the ratio between the price of one good and the price of a market basket of goods (a weighted average of the prices of all other goods available in the market).

Opportunity cost

opportunity costshidden costhidden costs
A relative price is an opportunity cost.

Agent (economics)

agentsagenteconomic agent
Microeconomics can be seen as the study of how economic agents react to changes in relative prices, and of how relative prices are affected by the behavior of those agents. Often inflation makes it difficult for economic agents to immediately distinguish increases in the price of a good which are due to relative price changes from changes in the price which are due to inflation of prices in general.

Demand

consumer demandmarket demanddemand side
In the demand equation Q = f(P) (in which Q is the number of units of a good or service demanded), P is the relative price of the good or service rather than the nominal price.

Real versus nominal value (economics)

inflation-adjustednominal valuenominal
In the demand equation Q = f(P) (in which Q is the number of units of a good or service demanded), P is the relative price of the good or service rather than the nominal price.

Consumer choice

consumer theoryincome effectconsumer choice theory
In the graphical rendition of the theory of consumer choice, as shown in the accompanying graph, the consumer’s choice of the optimal quantities to demand of two goods is the point of tangency between an indifference curve (curved) and the budget constraint (a straight line).

Tangent

tangent linetangentialtangents
In the graphical rendition of the theory of consumer choice, as shown in the accompanying graph, the consumer’s choice of the optimal quantities to demand of two goods is the point of tangency between an indifference curve (curved) and the budget constraint (a straight line).

Indifference curve

indifference curvesindifferentindifference-curve
In the graphical rendition of the theory of consumer choice, as shown in the accompanying graph, the consumer’s choice of the optimal quantities to demand of two goods is the point of tangency between an indifference curve (curved) and the budget constraint (a straight line).

Budget constraint

budget lineconstraintsendowment
In the graphical rendition of the theory of consumer choice, as shown in the accompanying graph, the consumer’s choice of the optimal quantities to demand of two goods is the point of tangency between an indifference curve (curved) and the budget constraint (a straight line).

Allocative efficiency

allocativeallocative inefficiencyallocatively efficient
This situation can lead to allocative inefficiency, and is one of the negative effects of inflation.

Real wages

real wagewage inflationreal average wages
This is because changes in the relative prices.

Numéraire

numeraireChange of numérairenormalized
In mathematical economics it is a tradable economic entity in terms of whose price the relative prices of all other tradables are expressed.

International monetary conferences

International Monetary ConferenceInternational Monetary Conference of 1867Monetary Conference
The disorganized state of the European currencies, which became more serious in consequence of the great expansion in trade and industry, came into notice through the great gold discoveries and their effect on the relative price of the two precious metals gold and silver.

Price signal

price signalschanging prices communicate informationsignal
In mainstream (neoclassical) economics, under perfect competition relative prices signal to producers and consumers what production or consumption decisions will contribute to allocative efficiency.

Arghiri Emmanuel

It stated, contrary to the then conventional Heckscher-Ohlin-Samuelson theory, that it was politically and historically set wage-levels that determined relative prices, not the other way around, and, contrary to the assumptions of Ricardo's comparative costs, that capital was internationally mobile and the rate of profit correspondingly equalised.

Homothetic preferences

homotheticHomothetic function (economics)
In a model where competitive consumers optimize homothetic utility functions subject to a budget constraint, the ratios of goods demanded by consumers will depend only on relative prices, not on income or scale.

Stolper–Samuelson theorem

Stolper-Samuelson modelStolper-Samuelson theorem
The theorem states that—under specific economic assumptions (constant returns to scale, perfect competition, equality of the number of factors to the number of products)—a rise in the relative price of a good will lead to a rise in the real return to that factor which is used most intensively in the production of the good, and conversely, to a fall in the real return to the other factor.

Marshall–Lerner condition

Marshall-Lerner condition
If the domestic currency devalues, imports become more expensive and exports become cheaper due to the change in relative prices.