Assume that the exchange rate between the dollar and the yen is ¥100 = $1. Suppose the exchange rate changes to ¥150 = $1. What is the price in yen of a $200 iPod before and after the exchange rate change?
A)¥20 000 before; ¥15 000 after
B)¥20 000 before; ¥30 000 after
C)¥300 before; ¥150 after
D)¥300 before; ¥200 after

Question

Quizplus · Accepted Answer

Before the exchange rate change, the price of the iPod in yen would be ¥100 x $200 = ¥20 000.
After the exchange rate change, the new price of the iPod in yen would be ¥150 x $200 = ¥30 000.

Assume That the Exchange Rate Between the Dollar and the Yen