the money price of a half litre of milk is $1.63, and the relative price of a half litre of milk in terms of…

the money price of a half litre of milk is $1.63, and the relative price of a half litre of milk in terms of ramen is 2.50 boxes of ramen noodles per half litre of milk. what is the money price of a box of ramen noodles? the money price of a box of ramen noodles is \na. the opportunity cost of a box of ramen noodles\nb. $0.65\nc. the opportunity cost of a half litre of milk\nd. $1.63

the money price of a half litre of milk is $1.63, and the relative price of a half litre of milk in terms of ramen is 2.50 boxes of ramen noodles per half litre of milk. what is the money price of a box of ramen noodles? the money price of a box of ramen noodles is \na. the opportunity cost of a box of ramen noodles\nb. $0.65\nc. the opportunity cost of a half litre of milk\nd. $1.63

Answer

Explanation:

Step1: Recall price - relation formula

The money - price of half - litre of milk ($P_m$) is related to the money - price of a box of ramen noodles ($P_r$) by the relative price ($RP$) formula: $P_m=RP\times P_r$.

Step2: Solve for the money - price of ramen

We know that $P_m = 1.63$ and $RP = 2.50$. Rearranging the formula $P_m=RP\times P_r$ to solve for $P_r$, we get $P_r=\frac{P_m}{RP}$. Substitute the values: $P_r=\frac{1.63}{2.50}=0.652\approx0.65$.

Answer:

B. $0.65$