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American cotton costs $1 per kg and identical Pakistani cotton costs Rs.100 per kg. If the exchange rate were Rs.150 to the $, for how
American cotton costs $1 per kg and identical Pakistani cotton costs Rs.100 per kg. If the exchange rate were Rs.150 to the $, for how much would Pakistani cotton sell in the United States and for how much would American cotton sell in Pakistan? Which countrys cotton would result in excess supply?
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