Microeconomics 20th Edition by Campbell McConnell, Stanley Brue,Sean Flynn

Exercise 4

Suppose that the current Canadian dollar (CAD) to U.S. dollar exchange rate is $0.85 CAD = $1 US and that the U.S. dollar price of an Apple iPhone is $300. What is the Canadian dollar price of an iPhone Next, suppose that the CAD to U.S. dollar exchange rate moves to $0.96 CAD = $1 US. What is the new Canadian dollar price of an iPhone Other things equal, would you expect Canada to import more or fewer iPhones at the new exchange rate