Economics 9708 · AS & A Level · 6.4

6.4 — practice question

If the exchange rate is 5 Egyptian pounds (EGP) = 1 US dollar ($), an American product is sold in Egypt for EGP 100. Provided that the dollar price does not change, what would the product cost in Egypt if the Egyptian pound rises to 4 EGP = 1 US$?

  • AEGP 75
  • BEGP 80
  • CEGP 120
  • DEGP 125

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