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Simora [160]
1 year ago
8

If the theory of purchasing power parity holds, how much does a pair of shoes made in Hong Kong cost in the United States if the

same shoes sell for 400 Hong Kong dollars in Hong Kong and the exchange rate is $0.125 per Hong Kong dollar? a. $24 b. $36 c. $50 d. $15 e. $72
Mathematics
1 answer:
horsena [70]1 year ago
6 0

The price of the shoe pair in us dollars will be $50. The correct option is C.

<h3>What is unit conversion?</h3>

Multiplication or division by a numerical factor, selection of the correct number of significant figures, and unit conversion are all steps in a multi-step procedure.

It is given that shoes sell for 400 Hong Kong dollars in Hong Kong and the exchange rate is $0.125 per Hong Kong dollar. The cost of the same shoes in the united states will be calculated as below:-

Cost of shoes in the US = Cost in Hongkong x Exchange rate

Cost of shoes in the US = 400 x 0.125

Cost of shoes in the US = $50

Therefore, the price of the shoe pair in us dollars will be $50. The correct option is C.

To know more about unit conversion follow

brainly.com/question/8426032

#SPJ1

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