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Stels [109]
3 years ago
5

If the current exchange rate is 1 euro to 1.5 U.S dollars, according to the theory of purchasing power parity, a haircut that co

sts 15 dollars in Dallas should cost ____ euros in Paris. A wheel of French cheese that costs 20 euros in Paris should cost ____ dollars in Dallas.
Business
1 answer:
STALIN [3.7K]3 years ago
4 0

Answer: (1) 10 euros (2) 15dollars

Explanation:

S= P1 /P2

where:

S= Exchange rate of currency 1 to currency 2

P1 = Cost of good X in currency 1

P2 = Cost of good X in currency 2

(1) s = 1.5, P1 = 15 dollars, P2 = ???

so,

1.5 = 15 / P2

P2 = 15/1.5 = 10 euros

Hence, according to the theory of purchasing power parity,

The price of a haircut that cost 15 dollars in Dallas will be 10 euros in Paris.

(2) S = P1/P2

taking 1 euro to 1.5dollars exchange,

1.5 = P1/P2 but P2 = 10 euros

hence P1 = 1.5 x 10 = 15 dollars.

Hence, according to the theory of purchasing power parity,

A wheel of French cheese that costs 20 euros in Paris should cost 15dollars in Dallas

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olga nikolaevna [1]

Answer:

Purchase decision process

Explanation:

A purchase decision process is defined as the thought process that goes into buying a certain product. This thought process include the buyer identifying a need, creating options, seeing different brands and then finally buying the product.

Purchase decision could be either minor or major. Purchasing things like tea, toothpaste, etc require minor decision processes while buying a house or piece of land involves major decision processes.

As in the question, Becky now has to under purchase decision process as to buying soccer cleats for her daughter. This decision will involve buying a brand that won't shrink as a result of weather changes or wear out easily, etc

I hope this helps.

5 0
3 years ago
I am having trouble with this question. Can you help me out?
Semmy [17]

Answer:

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6 0
2 years ago
Curtis williams is 69 years old. His wife, mary williams, is 67 years old. Curtis and mary plan to file a joint return. Mary is
kirill115 [55]

Curtis Williams is 69 years old. His wife, Mary Williams, is 67 years old. Curtis and Mary plan to file a joint return. Mary is legally blind. IRS provides high standard deduction to married couples who have age of 65 or above and blind or one of the partner is legally blind.

IRS states that if filling for joint return is done by married taxpayers in the year 2022 then normal standard deduction is $25,900. In this case Curtis and Mary both are over the age of 65 and Mary is blind too then as per IRS guidelines they will get $1,400 deduction per person for being above 65 plus Mary will get additional $1,400 deduction for being legally blind.

$25,900 + $1,400 + $1,400 + $1,400 = $30,100

Hence, Curtis and Mary's standard deduction is $30,100.

Read more about standard deduction on brainly:-

brainly.com/question/3158031

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3 0
2 years ago
Calculate the annual coupon payment if the semi-annual coupon paying bond price is $920, the yield for the bond is 6%, the bond'
Greeley [361]
FV: 1000
PV: -920
I/Y: 6/2= 3
N: 9(2)= 18
CPT PMT: 24.1833

this payment is for semi annually, the question asks for annual so:
24.1833(2)= 48.37
3 0
3 years ago
Congress passes a law that regulates the amount of lettuce that can be grown on a farm. Milton is a farmer who grows lettuce. He
Yuliya22 [10]

Answer:

The answer is: A) Declare the law constitutional because Milton's actions substantially affect interstate commerce.

Explanation:

The Commerce Clause, Article I, Section 8, Clause 3 of the Constitution of the United States:

[The Congress shall have Power] To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes.

Congress can enact laws that regulate interstate commerce, and this law is an example of one of them. It doesn't matter if Milton's action only affect commerce in a very small way, the law is still constitutional.

6 0
3 years ago
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