Mid-Term Assessment 1 99:10 Suppose that initially, the exchange to per euro. This means that the price of KeySharp's keyboards to US consumers was 800 euros x 51.60 per euro = $1,280.00 This means that the price of KeySharp's keyboards to US consumers was $1,286.00Because this dolar price of keyboards from KeySharp is higher than the dollar price of keyboards from Plano Palace, demand for Plano Palace keyboards is likely higher relative to KeySharp's keyboards in the United States, low high Now suppose that the euro weakens relative to the dollar, and the exchange rate changes to $1.25 higher After this change, the price of KeySharp's keyboards to US consumers is Because this dollar Jeyboards from KeySharp than the dollar price of keyboards from Piano Palace, demand for Plano Palace keyboards is likely relative to KeySharp's keyboards in the United States, due to the change in the exchange rate. now ipus Suppose that Plano Palace not only sells keyboards in the United States but also exports and sells them to France (another country in the eurotone). When the euro was $1.60, consumers in France paid euros for keyboards from Piano Palace. At this exchange rate, the euro price of Plano Palace keyboards was than that of Keysharp keyboards. However, at the newer exchange rate, the euro price of Piano Palace keyboards is now This would cause French consumers to increase demand for Generaling from the results of this fictionalized scenano, when other currencies are weak against the dollar US Imports should be relatively whe US exports should be relatively leading to a favorable position in terms of the balance of trade Save & Continue Continue without saving