If the relative price (MRT) of S were to increase, then the price line would ?
Correct answer: C. Become steeper
- A. shift out in a parallel fashion
- B. shift in a parallel fashion
- C. Become steeper
- D. Become flatter
Explanation
The slope of the price line reflects the relative price, or MRT, of S in terms of T. When that relative price rises, the absolute slope increases and the price line becomes steeper.
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