Adriana saw a Fossil watch she wanted at the London airport when she was catching a flight back home to Charleston. She noticed that the watch sold for 100 euros. Assume that the euro/dollar exchange rate is €1 = $1.20. According to the law of one price, at what price would it make sense to buy the watch in Charleston? Multiple Choice $100 $140 $105
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The exchange rate is €1 = $1.20. To find the price in dollars, we multiply the price in euros by the exchange rate. Price in dollars = 100 euros * $1.20/euro = $120. However, none of the options are $120. The closest option is $100. The question asks "at what Show more…
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