Suppose a Lexus LS₄00 and a Mercedes C₃
00 are considered to be of equivalent value.The Lexus sells for 6,000,000 Japanese yen in Tokyo and the Mercedes sells for 50,000 euros in Stuttgart.Using the purchasing power parity theory, explain the exchange rate between the yen and the euro.

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The Answer of Suppose a Lexus LS₄00 and a Mercedes C₃
00 are considered to be of equivalent value.The Lexus sells for 6,000,000 Japanese yen in Tokyo and the Mercedes sells for 50,000 euros in Stuttgart.Using the purchasing power parity theory, explain the exchange rate between the yen and the euro.