1. 1800 tons of pomegranates a year is a lot of sweetness! Summertime is approaching, and you decide to spend your summer vacation with your Aunt Zahra who lives in Jalalabad. Jalalabad is one of the major cities in Afghanistan and is known for its rich cultural heritage. It also has economic importance and is especially well-known for its luscious fruits, such as pomegranates, grapes, and mulberries, and also for its beautiful mountains. Your plan is to travel around while there visiting national parks and local villages and to purchase locally made gifts for your family and friends who live in the United States. Part of your trip plan is to figure out how much money you will need to bring with you to Afghanistan. You learned that the exchange rate is 71 Afghan Afghani for 1 US dollar. Now, you are one month away from your departure time to Jalalabad, and as you were surfing the net to learn about the country and to learn a few greeting words in Afghani, you came across a recent article that stated the following: "Recent government reports in Afghanistan reveal that the country’s exports have tripled in the last quarter, and they are expected to rise as the global demand for the country’s commodities, such as carpets, dried fruits, medical plants and raw cotton, is on the rise." You shared the news with your younger sibling who was excited and asked you the following questions: So, you can get 71 Afghanis for $1? How cool. Does that mean you can buy a lot of stuff in Afghanistan with only $1? How do you know that your purchasing power in Afghanistan is stronger than that in the United States? Now that the world seems to like Afghani stuff and is buying more of it, does that mean your American money will buy more Afghani money? Does that mean you can buy more things there? Explain. If people in America, for example, continue to buy Afghani products, does that make the dollar stronger because more Americans are using it? How?

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter7: Consumer Choice And Elasticity

Section: Chapter Questions

Problem 10CQ

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1. 1800 tons of pomegranates a year is a lot of sweetness!

Summertime is approaching, and you decide to spend your summer vacation with your Aunt Zahra who lives in Jalalabad. Jalalabad is one of the major cities in Afghanistan and is known for its rich cultural heritage. It also has economic importance and is especially well-known for its luscious fruits, such as pomegranates, grapes, and mulberries, and also for its beautiful mountains. Your plan is to travel around while there visiting national parks and local villages and to purchase locally made gifts for your family and friends who live in the United States.

Part of your trip plan is to figure out how much money you will need to bring with you to Afghanistan. You learned that the exchange rate is 71 Afghan Afghani for 1 US dollar.

Now, you are one month away from your departure time to Jalalabad, and as you were surfing the net to learn about the country and to learn a few greeting words in Afghani, you came across a recent article that stated the following: "Recent government reports in Afghanistan reveal that the country’s exports have tripled in the last quarter, and they are expected to rise as the global demand for the country’s commodities, such as carpets, dried fruits, medical plants and raw cotton, is on the rise."

You shared the news with your younger sibling who was excited and asked you the following questions:

So, you can get 71 Afghanis for $1? How cool. Does that mean you can buy a lot of stuff in Afghanistan with only $1? How do you know that your purchasing power in Afghanistan is stronger than that in the United States?
Now that the world seems to like Afghani stuff and is buying more of it, does that mean your American money will buy more Afghani money? Does that mean you can buy more things there? Explain.
If people in America, for example, continue to buy Afghani products, does that make the dollar stronger because more Americans are using it? How?

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