9514 1404 393 answer: less expensive step-by-step explanation: if we assume the supplies in nearland have a constant price of 15

Question

2 years ago

11

9514 1404 393 answer: less expensive step-by-step explanation: if we assume the supplies in nearland have a constant price of 15

nrd, then the cost in usd last year was ... (15 nrd)/(3 nrd/(1 usd)) = 5 usd this year, the cost is ... (15 nrd)/(5 nrd/(1 usd)) = 3 usd the cost in terms of usd has gone down. __ additional comments usually, exchange rates and local prices are related. if the supplies are produced in the us and sold in nearland, the producer may want to maintain their pricing in terms of usd. that is, a supply that cost 1 usd last year would have been priced at 3 nrd last year. this year, the same supply, for the same 1 usd cost would be priced at 5 nrd. in nearland, the supplies are more expensive than they were. the real answer is, "it depends".

History

1 answer:

Serggg [28] · Answer 1 · 2023-11-25T07:32:27+03:00

These items have become less expensive to buy than they were last year.

<h3>How to compare the prices of the items through the exchange rate</h3>

The constant price of the supplies of the area called Nearland = 15NRD

The cost of this prices using the currency to the dollar is

<u>Last year</u> = (15 NRDN / 3 NRD) * $

= $5

<u>This year t</u>he rate is = (15 NRD / 5 NRD) * $

= $3

Hence we can see that it was 5 dollars last year, but this year it is 3 dollars. The conclusion is that it has become less expensive.