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During a shopping spree in China , C . Dundee has bought a Sony CD boom box ( with woofers and tweeters ) for CY
During a shopping spree in China C Dundee has bought a Sony CD boom
box with woofers and tweeters for CY jade jewelry for CY and
four custommade suits for CY The spot exchange rate is CYAUD
a If PPP held, what should the same boom box, jewelry, and suits cost in
Australia?
b Suppose Mr Dundee is unexpectedly stopped at customs as he arrives in
Melbourne, and must pay import duties of percent. If the same boom box,
jewelry, and suits cost AUD AUD and AUD in Australia,
respectively, was his shopping spree worth at least the CY paid for
airfare and hotels during his trip?
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