Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Money and Banking

Question:

If the price of a pencil is ₹2 and that of a pen is ₹10, What is the relative price of a pen in terms of pencils?

Options:

5 pencils

10 pencils

2 pencils

0.4 pencils

Correct Answer:

5 pencils

Explanation:

The correct answer is Option 1: 5 pencils

To find the relative price of a pen in terms of pencils, you divide the price of the pen by the price of the pencil.

  • Price of a pen = ₹10
  • Price of a pencil = ₹2

Relative price of a pen in terms of pencils = Price of a pen / Price of a pencil
= ₹10 / ₹2
= 5 pencils

So, the relative price of a pen is 5 pencils.