Jets is the currency of Tulatula. When Tom, an American traveler, visited Tulatula in 2008, he spent 150 jets per night for a hotel room. Three years later in 2011, he also spent 150 jets per night. However, the dollar appreciated over this period and the new exchange rate was 8.50 versus 7.50 in 2008. How did the change in the exchange rate affect the dollar price of the hotel room?
A)The hotel room cost more in dollars in 2008.
B)The hotel room cost less in dollars in 2008.
C)There was no change since the price of the hotel room remained at 150 jets.
D)The hotel room cost less in jets and more in American dollars.

Question

Quizplus · Accepted Answer

In 2008, 150 jets = 150/7.50 = $20.00In 2011, 150 jets = 150/8.50 = $17.65The hotel room cost less in dollars in 2008.

Jets Is the Currency of Tulatula