# Tag Info

numeraire is by definition some unit of measure by which we measure all other units. In your case, let us say that we would decide to use $x$ as a numeraire. In that case we would divide all prices by $p_x$ so the price for $x$ would become $\frac{p_x}{p_x}=1$ (one $x$ can be worth only itself) and for good $y$ the price would be set as $\frac{p_y}{p_x}$. ...