The following question focuses on the exchange rate for U.S. dollars and euros.

Question

The following question focuses on the exchange rate for U.S. dollars and euros. The euro is the currency used by a group of European countries that have adopted a single currency. The exchange rate is defined as euros per U.S. dollar.

The table below shows the prices of two goods. Suppose that blue jeans are produced in the United States and that leather shoes are produced in Europe.
European Shoes
(150 euros per pair) American Blue Jeans
($50 each) Exchange Rate Price in
Europe Price in
the U.S. Price in
Europe Price in
the U.S. $1 = 1.25 euros 150 euros $120 62.5 euros $50 $1 = 1.50 euros 150 euros $100 -- $50

Explanation / Answer

answer will be

C.) $75

since $1=1.50euro and price of blue jeans in U.S is $50

so,price of blue jeans in europe=(1.50*50) =75

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