10,000 bushels of corn currently sells in the U. S. for $57,300. The current exchange rate is 68.13 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

To find the price in rupees, we need to convert the dollar price into rupees using the exchange rate.

57,300 dollars * 68.13 rupees/dollar = 3,903,849 rupees

Since PPP prevails, the price in rupees should be equivalent to the price in dollars when converted using the exchange rate. Therefore, the answer is A.

10,000 Bushels of Corn Currently Sells in the U