If the C$ Weakens by 2½% Relative to the Euro

question 259

Multiple Choice

If the C$ weakens by 2½% relative to the euro (C$1.00 = €0.7448) , what will be the new value for the euro per C$1.00?

• A) €0.6298 per C$1.00
• B) €0.6236 per C$1.00
• C) €0.6299 per C$1.00
• D) €0.7262 per C$1.00
• E) €0.6860 per C$1.00

---

Definitions:

Consumer Surplus

The gap between the price consumers are prepared to pay for a product or service and the amount they end up spending.

Autarky

A situation where a country is self-sufficient and does not engage in international trade.

Trade

The act of buying, selling, or exchanging goods and services between people or countries.

Domestic Price

The price of a good or service within a country's borders.