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In Munich a bratwurst costs 2 euros; a hot dog costs

In Munich a bratwurst costs 2 euros; a hot dog costs

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In Munich a bratwurst costs 2 euros; a hot dog costs

Question
1. In Munich a bratwurst costs 2 euros; a hot dog costs $1 at Boston’s Fenway Park. At an exchange rate of $1.50/per euro, what is the price of a bratwurst in terms of hot dogs? All else equal, how does this relative price change if the dollar appreciates to $1.25 per euro? Compared with the initial situation, has a hot dog become more or less expensive relative to a bratwurst? 2. A U.S. dollar costs 7.5 Norwegian kroner, but the same dollar can be purchased for 1.25 Swiss francs. What is the Norwegian krone/Swiss franc exchange rate?

In Munich a bratwurst costs 2 euros; a hot dog costs

 

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