Definition of Relative price:
Price of a commodity as it compares to another. The relative price is usually presented as a ratio between the two prices.
The ratio of the price of something at one time to its price at another.
How to use Relative price in a sentence?
- You need to figure out what the relative price should be and then decide if you are getting a good deal or not.
- A price relative of less than 1 indicates that the price level has fallen.
- Though consumers benefit from the lower cost of gasoline, big oil companies such as Shell and Exxon are worried about the relative price of petroleum versus coal or natural gas.
- I wanted to determine the relative price of the item compared to the other and I knew that it would determine how much we made it worth.
Meaning of Relative price & Relative price Definition