Suppose that the current exchange rate between the dollar and peso is $1 equals 10 pesos. If a firm in Mexico wanted to purchase $100,000 worth of U. S. televisions, how many pesos must they exchange? Question 39 options: A) 1,000,000 pesos B) 10,000 pesos C) 11,000,000 pesos D) 100,000 pesos

A) 1,000,000 pesos

Explanation:

The computation of the number of pesos must they exchange is shown below:

= Worth of U.S televisions × number of pesos

= $100,000 × 10 pesos

= 1,000,000 pesos

We simply multiplied the worth of U.S televisons with the number of pesos so that the number of pesos exchange could come and the same is to be considered

reducing the scale of the market for a new product.

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