A pair of shoes costs £40 in Britain. An identical pair costs $50 in the United States when the exchange rate is £1 = $1.50. Which of the following is correct?

Name: A pair of shoes costs £40 in Britain. An identical pair costs $50 in the United States when the exchange rate is £1 = $1.50. Which of the following is correct?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

All else being equal, at an exchange rate £1 = $1.50, the shoe should have cost $60 (40 × 1.5) in the U.S. At $50 for a pair, the U.S. offers a better deal.

A Pair of Shoes Costs £40 in Britain