Other things equal, and assuming efficient markets, if a Honda Accord costs $24,682 in the U.S., then at an exchange rate of $1.57/£, the Honda Accord should cost ________ in Great Britain.

Question

Quizplus · Accepted Answer

To find the cost of the Honda Accord in Great Britain, we need to convert the U.S. dollar price to pounds using the exchange rate of $1.57/£. So,

£ = $24,682/1.57 
£ = $15,721.65

Therefore, the Honda Accord should cost £15,721 in Great Britain. The correct answer is D.

Other Things Equal, and Assuming Efficient Markets, If a Honda