A pair of earrings costs £40 in Britain. An identical pair costs $50 in the United States when the exchange rate is £1 = $1.50. Which statement is correct (all else being equal)?

Question

BlackTom AI · Accepted Answer

Convert prices into a single currency to compare real cost given the exchange rate.

1. Relevant knowledge points and concepts
- An exchange rate (here £1 = $1.50) tells how many dollars one pound buys. To compare prices in two currencies, convert one price into the other currency using the exchange rate.
- The cheaper converted price indicates the better deal (all else equal).

2. Step-by-step reasoning
- Start with the British price: £40. Use the exchange rate £1 = $1.50 to express £40 in dollars.
- Alternatively, convert the U.S. price $50 into pounds to check consistency.

3. Calculations with intermediate steps
- Convert £40 to dollars:
  £40 × ($1.50 / £1) = $60.
  (Because each pound is worth $1.50, forty pounds are worth 40 × 1.50 = 60 dollars.)
- Convert $50 to pounds:
  $50 ÷ ($1.50 / £1) = $50 ÷ 1.50 = £33.333... (or £33 1/3).
  (Because one dollar is 1/1.50 = £0.666... so $50 equals 50 × 0.666... = £33.333...)

4. Why the correct answer is correct
- Comparing like-for-like: the British pair costs $60 when expressed in dollars, while the U.S. pair costs $50. Therefore the U.S. price is $10 less, making the United States the better deal.
- The pound price comparison (£40 vs £33.33 after converting $50) yields the same conclusion: the U.S. option is cheaper.

5. Why the other options are incorrect
- "The deal is the same in both countries." Incorrect because $60 (British price converted) ≠ $50 (U.S. price); they are not equal.
- "Britain offers a better deal." Incorrect because £40 (equivalent to $60) is more expensive than the U.S. $50 price; Britain is the costlier option.

6. Conclusion
Converting currencies shows the U.S. price ($50) is cheaper than the British equivalent ($60), so the United States offers a better deal. This matches the provided answer.

A pair of earrings costs £40 in Britain. An identical pair costs $50 in the United States when the exchange rate is £1 = $1.50. Which statement is correct (all else being equal)?单项选择题

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