Suppose that an American-made pair of pants has a price of $80. If the exchange rate is $0.065 = 1 peso, then a Mexican consumer would have to pay approximately __________ pesos to purchase the pants, but if the exchange rate is $0.055 = 1 peso, then a Mexican consumer would have to pay _________ pesos to purchase the pants.
A) 5.2; more
B) 1,231; more
C) 1,231; fewer
D) 5.2; fewer
E) 1,500; fewer
Correct Answer:
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