Question

This is a macroeconomics question (Econ 102). Please give a thoroughly detailed answer that's neat and legible. Thanks in advance, and I will like it after the answer is posted!

1. Exchange rates are 120 yen per U.S. dollar, 0.8 euro per U.S. dollar, and 20 pesos per U.S. dollar. A bottle of wine in New York costs 6 U.S. dollars, 1,200 yen in Tokyo, 7 euro in Berlin, and 100 pesos in Cancun. Where is the most expensive and the cheapest wine in that order?

Answer 1

ANSWER:

Price of wine new york = $6

Price of wine in tokyo = price in yen / price of yen per us dollar = 1,200 / 120 = $10

Price of wine in Berlin = Price in euro / Price of euro per us dollar = 7 / 0.8 = $8.75

Price of wine in cancun = price in peso / price of peso per us dollar = 100 / 20 = $5

In order from most expensive to least expensive:

1. Price of wine in tokyo

2 .Price of wine in berlin

3. Price of wine in New york

4. Price of wine in cancun