John wants to buy a new lawn mower.He can either buy it in the US and pay $500 or buy it in Mexico and pay 8188 Mexican Pesos.At the exchange rate of 1 Mexican Peso=0.771US$,ignoring any other costs,he would
A)Prefer buying in the US
B)Prefer buying in Mexico
C)Be indifferent about where he buys his television
D)None of the above

Question

​John wants to buy a new lawn mower.He can either buy it in the US and pay $500 or buy it in Mexico and pay 8188 Mexican Pesos.At the exchange rate of 1 Mexican Peso=0.771US$,ignoring any other costs,he would
A)​Prefer buying in the US
B)Prefer buying in Mexico
C)Be indifferent about where he buys his television
D)​None of the above

Quizplus · Accepted Answer

To compare the prices, we need to convert 8188 Mexican Pesos to US dollars:

8188 Mexican Pesos x 0.771 US dollars/Mexican Peso = $6,311.98

Since $6,311.98 is higher than $500, John should prefer buying the lawn mower in the US. Therefore, the answer is A.

​John Wants to Buy a New Lawn Mower

John Wants to Buy a New Lawn Mower