Question

The price of a dozen roses in the United States is about $30. If $0.559 U.S. dollars can purchase 1.00 Turkish Lira, how much does the same dozen roses cost in Turkey if purchasing power parity holds?

Answer 1

Answer:

$53.67

Explanation:

The computation of the rose cost in Turkey is shown below:

= (Price of a dozen roses in the United States × U.S dollars purchase value) ÷ (U.S dollars value)

= ($30 × 1) ÷ ($0559)

= $53.67

We simply multiply the price of a dozen rose with the U.S dollars purchase value and then divide it by the U.S dollars value so that the rose cost can be computed in a correct value.