Respuesta :
Hence if purchasing power parity holds true the price hockey puck in the USA IS 65.70.
Purchasing power parity is the measurement of expenses in distinctive nations that uses the expenses of particular goods to compare absolutely the buying power of the nation's currencies, and, to a degree, their people's residing requirements.
The purchasing power parity conversion issue is the number of units of a rustic's foreign money required to shop for equal amounts of goods and services within the domestic market as the U.S. greenback might purchase within the united states of America. This conversion element is for GDP.
Purchasing power parity (PPP) is essential as it permits economists to examine unique economies, mostly the financial productivity and the standard of dwelling among international locations. It seeks to equalize currencies to decide the fee of a basket of products.
Price of hockey pucks in the US
= 1/1.2937 Canadian dollars
Price of hockey pucks in Canada = 85 Canadian dollars,
= 1.2937 Canadian dollars then 85 Canadian dollars,
We will use cross multiplication
= 1× 85/1.2937= 65.70
Hence if PPT holds true the price hockey puck in the USA is 65.70
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