Economics 0455 · IGCSE · Foreign exchange rates

Foreign exchange rates — practice question

An Argentine product is first sold in the US at $50$ when the exchange rate between the two countries is $5$ pesos for $1$ dollar ($\$$). The exchange rate then changes to $10$ pesos for $1$ dollar, while the product’s price in Argentina stays the same. What is the product’s new US price?

  • A$5$
  • B$25$
  • C$100$
  • D$500$

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