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Florin and Guilder are two countries separated by a narrow sea. They use currenc

ID: 1114053 • Letter: F

Question

Florin and Guilder are two countries separated by a narrow sea. They use currencies called, respectively, the Flop and the Gulp.

Suppose the nominal exchange rate is 40 Flops per Gulp.

A Guilderian trader buys a 123 Flop barrel of Florish pickles by exchanging 6 Gulps, and a Florish trader buys a 4 Gulp crate of Guilderian apples by exchanging 80 Flops.

Then the Gulp depreciates to 40 Flops per Gulp.

Instructions: Enter your answers as whole numbers.

a. How much must the Guilderian pay for the same 123 Flop barrel of pickles?

b. How much must the Florish trader pay for the same 4 Gulp crate of apples?

Explanation / Answer

How much must the Guilderian pay for the same 123 Flop barrel of pickles

=6*40

=240 flops

How much must the Florish trader pay for the same 4 Gulp crate of apples

=80/40

=2 gulp

the above is the answer