Suppose that an American-made pair of blue jeans has a price of $80.If the exchange rate is $0.095 = 1 peso,then a Mexican consumer would have to pay approximately __________ pesos to purchase the blue jeans,but if the exchange rate is $0.085 = 1 peso,then a Mexican consumer would have to pay _________ pesos to purchase the blue jeans.

Question

Quizplus · Accepted Answer

When the exchange rate is $0.095 = 1 peso, the jeans cost 80 / 0.095 = 842 pesos. When the exchange rate is $0.085 = 1 peso, the jeans cost 80 / 0.085 = 941 pesos, which is more than 842 pesos.

Suppose That an American-Made Pair of Blue Jeans Has a Price