The above statement is correct. Negative relative velocity is possible. It is possible for relative velocity to be negative because it is the difference between two velocities regardless of their magnitude.
Question : Statement 1: The slope of the budget line represents the relative price of two goods.
Statement 2: The consumer achieves equilibrium when the marginal rate of substitution is equal to the relative price of the goods.
Question : Statement 1: Absolute poverty is determined by comparing the income of individuals with the average income in society.
Statement 2: Relative poverty refers to a specific income threshold below which individuals are considered poor.
Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile