Suppose you live in the United States and plan a vacation in London. You want to find the least expensive airfare ticket, so you request quotes from Independence Airline (a U.S. airline) and Queen's Airways (a U.K. airline). The following table shows the quoted prices in national currencies. Suppose that the current exchange rate, or dollar price per pound, is $2.07 = £1. Airline Independence Airline Queen's Airways Price $1,300 £600 To compare the prices of the two tickets, you need to express them in a common currency. The price of the Queen's Airways ticket in dollars is $ . Therefore, the ticket is cheaper for you to buy. queens airways or independence airline? Your friend travels to London a month later. At the time she buys her airfare ticket, the prices quoted by the two airlines are the same as before, but th exchange rate, or dollar price per pound, has risen to 2.31 = £1. Assuming that your friend is looking for the least expensive deal, she will travel with consumers. depreciated or appreciated In this scenario, the U.S. dollar against the British pound. As a result, the dollar price of an airplane ticket sold by a U.K. company ell/rose? ▼. Since the same logic applies to other goods and services, you can say that U.K. goods and services became_ expensive to U.S. more or less?
Suppose you live in the United States and plan a vacation in London. You want to find the least expensive airfare ticket, so you request quotes from Independence Airline (a U.S. airline) and Queen's Airways (a U.K. airline). The following table shows the quoted prices in national currencies. Suppose that the current exchange rate, or dollar price per pound, is $2.07 = £1. Airline Independence Airline Queen's Airways Price $1,300 £600 To compare the prices of the two tickets, you need to express them in a common currency. The price of the Queen's Airways ticket in dollars is $ . Therefore, the ticket is cheaper for you to buy. queens airways or independence airline? Your friend travels to London a month later. At the time she buys her airfare ticket, the prices quoted by the two airlines are the same as before, but th exchange rate, or dollar price per pound, has risen to 2.31 = £1. Assuming that your friend is looking for the least expensive deal, she will travel with consumers. depreciated or appreciated In this scenario, the U.S. dollar against the British pound. As a result, the dollar price of an airplane ticket sold by a U.K. company ell/rose? ▼. Since the same logic applies to other goods and services, you can say that U.K. goods and services became_ expensive to U.S. more or less?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose you live in the United States and plan a vacation in London. You want to find the least expensive airfare ticket, so you request quotes from Independence Airline (a U.S. airline) and Queen's Airways (a U.K. airline).
Transcribed Image Text:Suppose you live in the United States and plan a vacation in London. You want to find the least expensive airfare ticket, so you request quotes from
Independence Airline (a U.S. airline) and Queen's Airways (a U.K. airline). The following table shows the quoted prices in national currencies. Suppose
that the current exchange rate, or dollar price per pound, is $2.07= £1.
Airline
Independence Airline
Queen's Airways
Price
$1,300
£600
To compare the prices of the two tickets, you need to express them in a common currency. The price of the Queen's Airways ticket in dollars is
. Therefore, the
ticket is cheaper for you to buy.
queens airways or independence airline?
Your friend travels to London a month later. At the time she buys her airfare ticket, the prices quoted by the two airlines are the same as before, but the
exchange rate, or dollar price per pound, has risen to 2.31 = £1. Assuming that your friend is looking for the least expensive deal, she will travel with
depreciated or appreciated
In this scenario, the U.S. dollar
against the British pound. As a result, the dollar price of an airplane ticket sold by a U.K. company
fell/rose?. Since the same logic applies to other goods and services, you can say that U.K. goods and services became
expensive to U.S.
consumers.
more or less?
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