Suppose a Mexican consumer wants to buy an American television for $500 and an American wants to buy a Mexican raincoat for 700 pesos.If the exchange rate is $0.10 = 1 peso,then the price of the television in pesos will be __________ and the price of the raincoat in dollars will be __________.

Question

Quizplus · Accepted Answer

To find the price of the television in pesos, we need to multiply $500 by the exchange rate of $0.10 = 1 peso:
$500 * 10 = 5000 pesos
To find the price of the raincoat in dollars, we need to divide 700 pesos by the exchange rate of $0.10 = 1 peso:
700 / 10 = $70
Therefore, the best choice is A, which gives the correct prices in both pesos and dollars.

Suppose a Mexican Consumer Wants to Buy an American Television