In the u. s. a candy bar costs $1. if the nominal exchange rate were 6 chinese yuan per dollar and the real exchange rate were 1.2, then, what would be the price of a candy bar in china? a. 5 yuan b. 7.2 yuan c. 3.6 yuan d. 6 yuan

Hence correct option is b i.e 7.2 yuan.

Explanation:

Given data;

candy bar cost is $1

Nominal exchange rate =  6 yuan equal to 1 dollar

Real exchange rate is = 1.2 dollar per 6 yuan

Therefore price for one candy at china will be  

The price of candy bar at china is = 7.2 yuan

Hence correct option is b i.e 7.2 yuan.

changes in factors like average income and preferences can cause an entire demand curve to shift right or left. this causes a higher or lower quantity to be demanded at a given price. demand curves relate the prices and quantities demanded assuming no other factors change. it is important for consumers to know this information, because it is crucial for them to know what they can afford and can't afford. i hope this .

answer; ///(3) three parts;