Suppose a set of English bone china costing £1,000 costs $3,000 in the United States.After devaluation,the set of china costs $1,000.This change
A) shows that to foreigner purchasers,the price of the china is the same before and after the devaluation.
B) makes the china less attractive to foreigner purchasers.
C) makes the china more attractive to foreign purchasers.
D) is irrelevant to foreign purchasers.
E) proves that foreign purchasers would prefer devaluation of the English pound so that it would be worth $2.That way,they could get even more for their dollars.

Question

Quizplus · Accepted Answer

After devaluation, the set of English bone china now costs $1,000 in the United States, which is significantly less expensive than before. This makes the china more attractive to foreign purchasers, as they can now purchase it for a lower price in their own currency.

Suppose a Set of English Bone China Costing £1,000 Costs