Suppose you\'re planning a vacation to London and are trying to find an inexpens

Question

Suppose you're planning a vacation to London and are trying to find an inexpensive airplane ticket online. You see that Independence Airline (an American airline) offers a round-trip ticket for $1,100, while Queen's Airways (a British airline) offers one for 500. The current exchange rate is 1.94 $/. To compare the prices of the two tickets, you need to express them in a common currency. What is the price of the Queen's Airways ticket in dollars? $970 $1,100 $258 $953 Which airline's ticket is cheaper for you to buy? Independence Airline Queen's Airways Your friend goes to London a month later. At the time he buys his ticket, the ticket prices quoted by the two airlines are the same as before, but the exchange rate has risen to 2.24 $/. Which airline's ticket is cheaper for your friend to buy? Queen's Airways Independence Airline In this scenario, the U.S. dollar_appreciated_depreciated against the British pound. As a result, the dollar price of an airplane ticket sold by a British company_rose_fell. Since the same logic applies to other goods and services, you can say that imports from Britain became_more expensive_cheaper to Americans. At the same time, the price (in pounds) of an airplane ticket sold by an American company_fell_rose. Since the same logic applies to other goods and services, you can say that imports from America became_more expensive_cheaper to British citizens.

Explanation / Answer

1. $970

2. Queen's Airlines

3. Independence Airlines

4.Depriciated

5. Rose

6. More Expensive

7 Fell

8. Less Expensive

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