This economics question tests your understanding of economic models and analysis. The step-by-step answer below applies the relevant framework and explains the reasoning.
ScanSolve AI Answer
You're on a roll — here are the solutions to the questions: 1.3.1 Step 1: Use the given exchange rate to convert R14 800 to US Dollars. The exchange rate is 1 = R16.53. Amount in USD = Amount in ZARExchange rate Amount in USD = R14\,800R16.53/USD ≈ USD 895.34 Sipho's budgeted R14 800 is approximately USD 895.34. 1.3.2 Step 1: Use the given exchange rate to determine the price of the laptop in South African rand. The laptop costs 820, and the exchange rate is 1 = R16.53. Price in ZAR = Price in USD × Exchange rate Price in ZAR = USD 820 × R16.53/USD = R13\,554.60 The price of the laptop in South African rand is R13\,554.60$. 1.3.3 A weak rand means that one US Dollar (or any foreign currency) costs more South African Rands. Therefore, when South African consumers buy imported goods, they have to pay more Rands for the same item, making imported goods more expensive. Keep up the great work! Send me the next one 📸