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In Munich, the price of bratwurst is 5 euros, and in Boston's Fenway Park, the price of a hot dog is 4 dollars. At an
In Munich, the price of bratwurst is 5 euros, and in Boston's Fenway Park, the price of a hot dog is 4 dollars. At an exchange rate of 1.05 dollars per euro, what is the price of bratwurst when expressed in terms of hot dogs? If the dollar strengthens to 1.25 dollars per euro, how does this relative price change? When compared to the initial situation, did hot dogs become relatively more expensive or cheaper than bratwurst?
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