Chapter 7 - Assignment 2: CD prices in the United Kingdom
Find the price of one of your favorite CDs at
Cheap or What! CDs, an online CD store located in the United Kingdom. This price is
expressed in terms of British pounds.
- What is the name of the CD you selected? What is it's price in pounds?
- According to the World Exchange
Rate table provided by Digital Passport, what is the current exchange rate between the
British pound and the U.S. dollar? (Note that this is expressed in terms of dollars per pound.)
- What is the exchange value of a dollar in terms of British pounds?
- Use this information to determine the U.S. domestic currency price of this CD. Is this price
higher or lower than you would have expected to pay for this CD in a U.S. store? How could such
a difference persist?
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