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Suppose the cost of production of a widget in Mexico is 5 pesos. Suppose initially the exchange rate between the peso and the dollar is 10 pesos per...
Suppose the cost of production of a widget in Mexico is 5 pesos. Suppose initially the exchange rate between the peso and the dollar is 10 pesos per dollar. Later the exchange rate changes to 5 pesos per dollar. In the initial situation, a widget sold in the U.S. would be priced at ____; after the change in the exchange rate, the widget would be priced at