Assume that the exchange rate between the euro and the dollar is €1 = $1.20.According to the law of one price,a camera that retails for $300 in New York should sell for _____in Germany.

Name: Assume that the exchange rate between the euro and the dollar is €1 = $1.20.According to the law of one price,a camera that retails for $300 in New York should sell for _____in Germany.
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Question

Quizplus · Accepted Answer

Since one euro is equal to 1.2 dollars,the price of the camera is €250 ($300/1.2).

Assume That the Exchange Rate Between the Euro and the Dollar