A widget costs $1000 in the US and CAD$1200 in Canada.The current exchange rate is 1USD=1.09CAD.At this rate,
A)The good costs more in the US
B)The good costs more in Canada
C)The good costs the same across the two countries
D)None of the above

Question

​A widget costs $1000 in the US and CAD$1200 in Canada.The current exchange rate is 1USD=1.09CAD.At this rate,
A)​The good costs more in the US
B)The good costs more in Canada
C)The good costs the same across the two countries
D)​None of the above

Quizplus · Accepted Answer

At the current exchange rate of 1USD=1.09CAD, the cost of the widget in Canada is CAD$1200. To find the cost of the widget in USD, we can divide CAD$1200 by 1.09:

CAD$1200 / 1.09 = USD$1100.92

Since USD$1000 is less than USD$1100.92, the widget costs more in Canada. Therefore, the correct choice is B: The good costs more in Canada.

​A Widget Costs $1000 in the US and CAD$1200 in Canada.The

A Widget Costs $1000 in the US and CAD$1200 in Canada.The