Economics · May / June 2023 · Paper 11 · Question 29
An Argentine product initially sells in the US for $50 when the exchange rate between the two countries is 5 pesos to 1 dollar. The exchange rate changes to 10 pesos to 1 dollar and the price of the product remains unchanged in Argentina. What will be the new price of the product in the US?
- A$5
- B$25
- C$100
- D$500
As printed in the paper
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Correct answer: B. $25
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