10,000 bushels of corn currently sells in the U.S.for $57,300.The current exchange rate is 55.02 rupees to the dollar.If purchasing power parity prevails,what is the price of 10,000 bushels of corn in rupees?

Question

Quizplus · Accepted Answer

First, we need to calculate the price of one bushel of corn in dollars by dividing the total cost by the number of bushels: $57,300/10,000 = $5.73. Then we can use the exchange rate to convert the dollar price to rupees: $5.73 x 55.02 = 315.3156 rupees per bushel. Multiplying by 10,000 bushels gives us a total price of 3,153,156 rupees, which is closest to option A, 2,152,646 rupees.

10,000 Bushels of Corn Currently Sells in the U