Find the least expensive airfare ticket

Assignment Help Business Economics

Reference no: EM13986948

Suppose you live in the United States and plan a vacation in London. You want to find the least expensive airfare ticket, so you request quotes from Independence Airline (a U.S. airline) and Queen's Airways (a U.K. airline). The following table shows the quoted prices in national currencies. Suppose that the current exchange rate, or dollar price per pound, is . Airline Price Independence Airline $1,300 Queen's Airways £600 To compare the prices of the two tickets, you need to express them in a common currency. The price of the Queen's Airways ticket in dollars is . Therefore, the ticket is cheaper for you to buy. Your friend travels to London a month later. At the time he buys his airfare ticket, the prices quoted by the two airlines are the same as before, but the exchange rate, or dollar price per pound, has risen to . Assuming that your friend is looking for the least expensive deal, he will travel with . In this scenario, the U.S. dollar against the British pound. As a result, the dollar price of an airplane ticket sold by a U.K. company . Since the same logic applies to other goods and services, you can say that U.K. goods and services became expensive to U.S. consumers.

Reference no: EM13986948

Questions Cloud

Determine the initial velocity of the bullet : A bullet with a mass of 80 g is fired horizontally and imbeds itself into a bag of sand having a mass of 25 kg as it hangs from a 2 m long cable. After impact the cable swings through angle θ= 20o. Determine the initial velocity of the bullet.

Discuss the differences between shields- shoring and sloping : Discuss the differences between shields, shoring, and sloping in the context of protective systems used in excavation. How is the appropriate system selected? Your response should be at least 150 words in length.

What is the percentage change in the effective exchange rate : Suppose 80% of US trade is with Canada and the rest is with Mexico. If the dollar appreciates by 10% against the Canadian dollar and appreciates by 20% against the Mexican peso, what is the percentage change in the effective exchange rate of the Unit..

What is the speed of the block immediately after bullet stop : A bullet of mass 5.9 g is fired horizontally into a 3.8 kg wooden block at rest on a horizontal surface. What is the speed of the block immediately after the bullet stops relative to it? At what speed is the bullet fired?

Find the least expensive airfare ticket : Suppose you live in the United States and plan a vacation in London. You want to find the least expensive airfare ticket, so you request quotes from Independence Airline (a U.S. airline) and Queen's Airways (a U.K. airline). The following table shows..

How is the comfort or discomfort of characters : How is the comfort or discomfort of characters related to or separated from societal conditions? Which elements of the works point to or away from those societal conditions being considered as problems

What are the common causative factors : You may narrow your topic down to a more specific type of accident within the major category. For example, under falls, you could focus your research on falls from ladders. When writing the paper, consider the following questions: What are the com..

What is speed of block bullet immediately after collision : A bullet (mass 3.5 g), traveling horizontally at unknown speed, strikes a ballistic pendulum. What is the speed of block+bullet immediately after the collision? What was the original speed of the bullet?

Viewing the movie wall street by renting : You will be viewing the movie WALL STREET by renting, buying or borrowing the film from the library. Your report should be at least three pages long. SUMMARIZE the story of the film. Discuss the economic aspects of the film, refer to your textbook. D..

User Account

All Pages