Question

Question 29 Multiple Choice Worth 3 points)

Answer 1

If the value of dollar falls in comparsion to euro, goods supplied to Elaine's store would cost her more.

Explanation:

Since Elain specialises in speciality foods from Europe she must have to import it. Hence, she must have been paying in dollars which would later be converted in euro at the appropriate conversion rate.

Now, if the value of the dollar falls when compared to the euro, it means that for the same out of goods Elaine must have to pay more dollars(since dollar value has fallen). Hence the goods that are supplied in her store would cost her more than before.