If Purchasing-Power Parity Held,if a Big Mac Costs $2 in Canada,and

question 119

Multiple Choice

If purchasing-power parity held,if a Big Mac costs $2 in Canada,and if 10 Mexican pesos trade for $1 Canadian dollar,then a Big Mac in Cancun,Mexico should cost:

• A) 2 pesos.
• B) 5 pesos.
• C) 10 pesos.
• D) 20 pesos.