Question

In late 2012 a euro cost $1.30 of Canadian currency, and in late 2016 a euro cost $1.50. What can we say about this change? of Select one: o a. The Canadian dollar became stronger relative to the euro O b. The euro has remained the same relative to the Canadian dollar O c. The exchange rate between the dollar and the euro has deviated significantly from its market equilibrium. d. The Canadian dollar became weaker relative to the euro.

Answer 1

1. Answer: (d) The canaian dollar become weaker relative to zero

Explanation: We can see in 2012 if we want to purchase one euro with canadian currency we need only to pay $1.30, But for purchasing the same we need to pay $1.50 in late 2016 which clearly shows canadian dollaor has become weak that is the reason why we need to pay for purchase of euro

2. Answer: (b) Threat of substitue products

Explanation: Which means availability of vide variety of products from different industires as substitute at competetive price in which consumer wants to purchase. The given case is example for threat of substitue products.

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