Assume that the dollar price of a basket of goods in the United States is $3 and the dollar price of the same basket of goods in China is $5.In addition,the yuan price of the same basket in the United States is 20 yuan.Given this information,the yuan price of the basket in China is ________.

Question

Quizplus · Accepted Answer

We can use the exchange rate between the US dollar and yuan to figure out the yuan price of the basket in China:
20 yuan = $3 
1 yuan = $0.15 ($3 divided by 20) 
Therefore, the dollar price of the basket in China is $5 or 33.33 yuan ($5 divided by $0.15).

Assume That the Dollar Price of a Basket of Goods