Problem 21-04 (algo) Suppose that the current Canadian dollar (CAD) to U.S. dollar exchange rate is $0.80 CAD = $1 US and that the U.S. dollar price of an Apple iPhone is $260.   Instructions: In part a, enter your answer as a whole number. In part b, round your answer to 2 decimal places.   a. What is the Canadian dollar price of an iPhone?         $ CAD     Next, suppose that the CAD to U.S. dollar exchange rate moves to $0.92 CAD = $1 US.

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Problem 21-04 (algo)

Suppose that the current Canadian dollar (CAD) to U.S. dollar exchange rate is $0.80 CAD = $1 US and that the U.S. dollar price of an Apple iPhone is $260.

 

Instructions: In part a, enter your answer as a whole number. In part b, round your answer to 2 decimal places.

 

a. What is the Canadian dollar price of an iPhone? 

 

     $ CAD

 

 

Next, suppose that the CAD to U.S. dollar exchange rate moves to $0.92 CAD = $1 US. 

 

b. What is the new Canadian dollar price of an iPhone?

 

     $ CAD

 

 

c. Other things being equal, would you expect Canada to import more or fewer iPhones at the new exchange rate? 

 

    

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