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Suppose Wilson produces tennis rackets in the United States, and its most popular tennis racket is priced at $90. Its primary competitor Dragon Step
Suppose Wilson produces tennis rackets in the United States, and its most popular tennis racket is priced at $90. Its primary competitor Dragon Step International Ltd. is based in China and sells tennis rackets to U.S. customers through its website. Dragon Step has set the price of its tennis racket at 611 Chinese Yuan (CNY). When the exchange rate was $0.18 per CNY one year ago, the price of Dragon Step's racket to U.S. consumers was Because U.S. consumers could buy a Wilson racket for only $90, the U.S. demand for Dragon Step rackets was______ ----- Since then, however, the CNY's value has depreciated, and it is now valued at only $0.12 per CNY. U.S. consumers can now purchase the Dragon Step tennis racket for which is lower than the price of the Wilson racket. Consequently, the U.S. demand for Dragon Step rackets is now_____ $115.98; low; $70.32; very high $115.98; high; $70.32; very low $109.98; low; $73.32; very high $109.98; high; $73,32; very low
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