Explore BrainMass

Explore BrainMass

    Purchasing power parity (PPP)

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Hockey skates sell in Canada for $105 Canadian dollars. Currently, 1 Canadian dollar equals 0.74 U.S. dollar. If purchasing power parity (PPP) holds, what is the price of hockey skates in the United States?
    $64.79
    $71.10
    $74.55
    $77.70
    $87.15

    © BrainMass Inc. brainmass.com June 3, 2020, 9:38 pm ad1c9bdddf
    https://brainmass.com/business/finance/purchasing-power-parity-ppp-problem-192744

    Solution Preview

    Hockey skates sell in Canada for $105 Canadian dollars. Currently, 1 Canadian dollar equals 0.74 U.S. ...

    Solution Summary

    Using Purchasing power parity (PPP), the price of hockey skates in the United States is calculated, given the price in Canada and the exchange rate between Canadian dollar and U.S. dollar.

    $2.19

    ADVERTISEMENT