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purchasing power parity activity 1)Today, 1 USD = 1

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purchasing power parity activity

1)Today, 1 USD = 1.32 CAD. If you paid $800 for a pair of Nike Jordan's in Detroit, what would be the price in Windsor, Canada, assuming PPP has been achieved?

2)Today, 1USD = 21.10 MXN. One pair of Nike Jordan's is $800 in Detroit. If you paid 15,500 MXN in Mexico City, did you save on the price in Detroit? How much?  

3)If the exchange rate changes to 1UDS = 23.16 MXN, what should be the price of the shoes in Mexico City, in the above example, if purchasing power parity is achieved?

4)Yesterday, 1USD = 21.10 MXN. You supply 200 calculators, every month, to a business in Mexico City. One calculator sells for $10 in Detroit. Your customer sent you a check for 42,200 MXN. Has PPP been achieved?

5)Now assume 1USD = 22.5 MXN for the example above. What would be the price of one calculator in MXN in Mexico City, if PPP is to be achieved?