Answer:
The result will be that Americans will buy more pesos because Mexican goods become relatively less expensive.
Explanation:
If the exchange rate between the U.S. dollar and the Mexican peso starts out at $0.12 per peso, and then changes to $0.09 per peso it means that people would receive more Mexican pesos for its dollars as 1 peso used to cost $0.12 and it now costs $0.09. If a product costs $100 pesos, when the exchange rate is $0.12 per peso, it costs Americans $12 pesos and when the exchange rate is $0.09 per peso, it costs $9 pesos which indicates that the price of the product decreases. This means that Mexican products will be cheaper for Americans and because of that the answer is that Americans will buy more pesos because Mexican goods become relatively less expensive.
Answer and Explanation:
The classification is as follows:
a. In the case when the quantity demanded is more than the price so it is a price elastic demand
b. In the case when the change in price of 1% lower than the change in quantity demanded so it is price inelastic demand
c. And, in the case where there is a change of 1% in a price that generated the 1% change in quantity demanded is unit elastic demand
Answer:
d. allow most participants to routinely earn high returns with low risk
Explanation:
In the financial markets there is always an element of risk in transactions. Generally speaking the higher the risk the higher the gain.
Low risk instruments have low returns on investment. Even for these low risk assets sometes the risk can be high for example if a client has a fixed deposit with a bank, and the bank liquidated. The client may not get his full funds invested back.
High risk markets like the forex market has one of the highest returns on investment, but high risk can also make an investor lose substantially.
According to the circular flow model of the economy, a person's job in a shoe factory is within a [Resource] market. Resource market is a market in which the business can buy a resources which is a person that works for them to be able to produce goods and services
Answer:
a.Georgeland has an absolute but not a comparative advantage in producing clothing.
Explanation:
A country has a comparative advantage in production if it produces at a lower opportunity cost when compared with other countries.
A person has an absolute advantage in production if it produces more quantities of the good when compared with other countries.
Georgeland produces more quantities of both food and clothes when compared to Alland, so it has absolute advantage in both activities .
The opportunity cost of georgeland in producing clothes = 36 / 18=2
The opportunity cost of georgeland producing food = 18 / 36 = 0.5
For Alland,
the opportunity cost of producing clothes = 32 / 16= 2
the opportunity cost of producing food = 16 / 32 = 0.5
Neither countries don't have a comparative advantage in the production of either clothes of food bedside they have the same opportunity costs in both activities.
I hope my answer helps you