What should be the price of the same disk in mexico
Problem:
In the spot market 7.8 pesos can be exchanged for 1 U.S. dollar. A compact disk costs $15 in the United States. If purchasing power parity holds, what should be the price of the same disk in Mexico?
Now Priced at $20 (50% Discount)
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If purchasing power parity holds, what should be the price of the same disk in Mexico?
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