What is the correct definition of the term �relative price� 1.The r.pdf

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What is the correct definition of the term relative price? 1.The relative price is a theoretical concept denoting the inter-relationship between the factors of production regarding their quantity and quality. 2.The relative price is the market price of natural resources such as minerals or farmland. 3.The relative price reflects the sum that the state is willing to pay in compensation to its subjects when expropriating their resources. 4.The relative price is determined by the supply and demand of labour resources..

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