Question

Suppose that an American-made pair of blue jeans has a price of $80. If the exchange rate is $0.095 = 1 peso, then a Mexican consumer would have to pay approximately __________ pesos to purchase the blue jeans, but if the exchange rate is $0.085 = 1 peso, then a Mexican consumer would have to pay _________ pesos to purchase the blue jeans.

Answer 1

Answer:

The correct answer is 842.1 Pesos and 941.18 Pesos.

Explanation:

According to the scenario, the given data are as follows:

Price of Jeans = $80

So, if exchange rate is $0.095 = 1 pesos

Then pesos required to buy that jeans can be calculated as follows:

Pesos required = $80 ÷ $0.095

= 842.1 Pesos

And if 1 Pesos = $0.085, then

Pesos required = $80 ÷ $0.085

= 941.18 Pesos