A product sells for $750 in the United States. The exchange rate is $1 to 1.65 Swiss francs. If purchasing power parity (PPP) holds, what is the price of the product in Switzerland?

Name: A product sells for $750 in the United States. The exchange rate is $1 to 1.65 Swiss francs. If purchasing power parity (PPP) holds, what is the price of the product in Switzerland?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

$750 equals 1,237.50 [(750)(1.65)] Swiss francs. If PPP holds, the product should cost the same in both markets.

A Product Sells for $750 in the United States