Shemi lives in Canada and is considering buying a new sofa. If the price level i

Question

Shemi lives in Canada and is considering buying a new sofa. If the price level in Canada falls and the price level in the United States does not change, Canadian manufactured sofas are relatively 0 A, O B. ° C. 0 D. O E. less expensive, so Sherri will likely purchase a U S manufactured sofa more expensive, so Sherri will likely purchase a Canadian manufactured sofa more expensive, so Sherri will likely purchase a U S manufactured sofa less expensive, so Sherri will likely purchase a Canadian manufactured sofa Both answers B and D could be correct depen ding on whether U S manufactured sofas were initially more expensive or less expensive than Canadian sofas

Explanation / Answer

Ans is D

Sherri lives in Canada and price level falls whereas US price level remians same which makes Canada product relatively less expensive and Sherri would like to purchase Canadian mfg. Sofa

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