The Beginning-Of-The-Year Price for a 33 Pound Bag of Premium

question 25

Multiple Choice

The beginning-of-the-year price for a 33 pound bag of premium dog food is $45.00 in the United States and ¥5,400 in Japan.We know that prices in the United States and Japan will change over the coming year due to inflation.If we assume that inflation in the United States (our home country,infh) will be 2% and inflation in Japan will be 3% (our foreign country,inff) ,what will the price of the dog food be at the end of the year?

• A)The U.S.price is $46.90 and we do not know the Japanese price.
• B)The U.S.price is $45.90 and the Japanese price is ¥5,438.
• C)The Japanese price is ¥5,562 and the U.S.price will be $45.90.
• D)We cannot determine either price.

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