Chapter 1 - Assignment 3: CD prices in the United Kingdom

<BODY ALINK="#FF0000" VLINK="#990066" LINK="#003399" BGCOLOR="#FFFFFF" BACKGROUND="../../../images/globebg.jpg"><FONT FACE="tahoma, geneva, arial, sans serif">Chapter 1 - Assignment 3: CD prices in the United Kingdom</FONT><B>Questions:</B>Find the price of one of your favorite CDs at <A TARGET="outside" HREF="http://www.cow.co.uk"><I>Cheap or What! CDs</I></A>, an online CD store located in the United Kingdom. This price is expressed in terms of British pounds. <P> </P><OL TYPE="a"><LI>What is the name of the CD you selected? What is it's price in pounds? </LI><LI>According to the <A TARGET="outside" HREF="http://www.rubicon.com/passport/currency/currency.html">World Exchange Rate table</A> provided by Digital Passport, what is the current exchange rate between the British pound and the U.S. dollar? (Note that this is expressed in terms of dollars per pound.) </LI><LI>What is the exchange value of a dollar in terms of British pounds? </LI><LI>Use this information to determine the U.S. domestic currency price of this CD. Is this price higher or lower than you would have expected to pay for this CD in a U.S. store? How could such a difference persist? </LI></OL> [ <VIEW INCLUDE="student"> <A TARGET="_top" HREF="/economics/boyes_melvin/fund/student/c01.htm">Chapter 1</A> | <A HREF="mailto:csweb.College_Econ@cengage.com">Feedback</A> ] <INSERT NAME="COPYRIGHT" SRC="/templates/template.tem"></INSERT> </BODY>