1. Comparing prices in different countries Suppose you live in the United States

Question

1. Comparing prices in different countries

Suppose you live in the United States and plan a vacation in London. You want to find the least expensive airfare ticket, so you request quotes from Independence Airline (a U.S. airline) and Queen's Airways (a U.K. airline). The following table shows the quoted prices in national currencies. Suppose that the current exchange rate is 1.88 $/£.

To compare the prices of the two tickets, you need to express them in a common currency. The price of the Queen's Airways ticket in dollars is_____. Therefore, the________    ticket is cheaper for you to buy.

Your friend travels to London a month later. At the time he buys his airfare ticket, the prices quoted by the two airlines are the same as before, but the exchange rate has fallen to 1.58 $/£. Assuming that your friend is looking for the least expensive deal, he will travel with_________   .

In this scenario, the U.S. dollar________   against the British pound. As a result, the dollar price of an airplane ticket sold by a U.K. company______   . Since the same logic applies to other goods and services, you can say that U.K. goods and services became ______expensive to U.S. consumers.

To compare the prices of the two tickets, you need to express them in a common currency. The price of the Queen's Airways ticket in dollars is_____. Therefore, the________    ticket is cheaper for you to buy.

Your friend travels to London a month later. At the time he buys his airfare ticket, the prices quoted by the two airlines are the same as before, but the exchange rate has fallen to 1.58 $/£. Assuming that your friend is looking for the least expensive deal, he will travel with_________   .

In this scenario, the U.S. dollar________   against the British pound. As a result, the dollar price of an airplane ticket sold by a U.K. company______   . Since the same logic applies to other goods and services, you can say that U.K. goods and services became ______expensive to U.S. consumers.

Explanation / Answer

I cannot see the table completely,

I cannot see the values there.

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