Question

The euro/dollar exchange rate is €1-$1.20. According to the law of one price, a camera that retails for $300 in New York should sell for ________ in Germany.

Answer 1

The euro/dollar exchange rate is €1-$1.20. According to the law of one price, a camera that retails for $300 in New York should sell for €250 in Germany.

Step-by-step explanation:

By rule of three:

if $1,2 ------ €1

$300------ x= €250