Question

g "At the current exchange rate of $1.40 per British pound, a one-day pass to Worldwide Theme Park of Florida sells for 54 pounds at travel agencies throughout Great Britain. If the exchange rate increases to $1.70 per pound, what will happen to the price of a one-day pass sold in Great Britain?"

Answer 1

Answer:

The price will fall to 44.47 pounds

Step-by-step explanation:

Calculation for what will happen to the price of a one-day pass sold in Great Britain

Using this formula for the First step

Sales pounds × Current exchange rate

54 pounds x $1.40 = $75.6

Second step

75.6/Increase in exchange rate of $1.70

= 44.47 pounds

Therefore the price will fall to 44.47 pounds