Problem
In Munich a bratwurst costs 2 euros; a hot dog costs $1 at Boston's Fenway Park. At an exchange rate of $1.50/per euro, what is the price of a bratwurst in terms of hot dogs? All else equal, how does this relative price change if the dollar appreciates to $1.25 per euro? Compared with the initial situation, has a hot dog become more or less expensive relative to a bratwurst?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.