Answer: None of the above
Explanation: f the relative price of one unit of good y is 0.25 units of good z, it means that
[tex]P_{y} = 0.25 * P_{z}[/tex]
Out of the given options none satisfy this condition, for
a. [tex]P_{y} = 0.25 * P_{z}[/tex]
[tex]P_{y} = 0.25 (4000)
= 1000 \neq 2000[/tex]
b. [tex]P_{y} = 0.25 * P_{z}[/tex]
[tex]P_{y} = 0.25 (1000)
= 250 \neq 2000[/tex]
c. [tex]P_{y} = 0.25 * P_{z}[/tex]
[tex]P_{y} = 0.25 (2000)
= 500 \neq 1000[/tex]
Therefore, none of the above options satisfy the relative price equation.
