Assume there is a competitive market for automobiles. Assume too that the average car in Europe sells for 35,000, and the average car in the Us sells for $42,000. If transport costs are 5% of the dollar value of the shipment,

a) cars will only be shipped from Europe to the US when the value of the Euro in terms of the dollar is (higher, lower) _______ than _______ approximately

b)and from the US to Europe when it is (higher, lower) _____ than _____ approximately.