In practice, people often use The Big Mac index, which provides an interesting perspective into the determination of foreign exchange rates. In the United States, a Big Mac sells for $5.06, while it costs GEL5.85 in Georgia. The official exchange rate is $1

= GEL2.41. Is GEL overvalued or undervalued? What should be the implied exchange rate? What will be your answer if a Big Mac costs GEL12.85 in Georgia?