Exam 4: Prices Free Controlled and Relative

-Refer to Situation 4-1. Because price controls were in effect at the time the embargo occurred, an economist would have most likely predicted that

Suppose that the price of peanut butter is $3 per pound and the price of almond butter is $5 per pound. If the price of peanut butter rises to $3.60 and the price of almond butter rises to $5.50, then the absolute price of peanut butter has _______________ and the relative price of peanut butter has _______________.