Register
Suppose hockey skates sell in Canada for 135 Canadian dollars, and 1 Canadian dollar equals 1.004 U.S. Dollar. If purchasing power parity (PPP) holds, what is the price of hockey skates in the United States?
42.3k views
3 votes
Suppose hockey skates sell in Canada for 135 Canadian dollars, and 1 Canadian dollar equals 1.004 U.S. Dollar. If purchasing power parity (PPP) holds, what is the price of hockey skates in the United States?

User Yotka
by
4.5k points

1 Answer

2 votes

Answer:

$135.54

Step-by-step explanation:

Calculation for the price of hockey skates in the United States

Using this formula

Price of hockey skates=Hockey skates sale × Spot rate Ph

Let plug in the formula

Price of hockey skates= 135.00 × $1.004Ph

Price of hockey skates=$135.54

Therefore the price of hockey skates in the United States is $135.54

User Msam
by
5.2k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

5.1m questions

6.7m answers

Other Questions

Misk Co. purchased the following securities during 20X7 to be classified as held-to-maturity securities, trading securities, or available-for-sale securities: I. Debt securities bought and held for the
Which of the following should be considered last when searching for financing? Family members Banks Commercial finance companies Credit cards I'm guessing it's C but idk
Explain the similarities and differences between how both producers and consumer use money
Donna's philosophy as she coordinates the marketing efforts is to keep in mind the company's overarching strategy, and to ensure that all marketing activities send a consistent message, beginning with
Brett buys a new cell phone for​ $100. he receives consumer surplus of​ $80 from the purchase. how much does brett value his cell​ phone?
Link Copied!