If a pound of coffee beans costs 85 pesos in Mexico City and 10 pesos = 35 rupees, then the same pound of coffee should cost ___ rupees in New Delhi, all other things equal.

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BlackTom AI · Accepted Answer

To compare the cost across currencies, first establish the exchange rate given: 10 pesos equals 35 rupees. 
From this, 1 peso equals 35/10 = 3.5 rupees. 
Next, convert the price in pesos to rupees using this rate: 85 pesos × 3.5 rupees/peso = 297.5 rupees. 
Now evaluate the options one by one:
- 297.50: This matches the calculated rupee amount exactly, so it is consistent with the given exchange rate.
- 3,500: This would imply a conversion far larger than the rate indicates (it would correspond to 1 peso ≈ 41.18 rupees or 10 pesos ≈ 350 rupees), which is inconsistent with the provided rate.
- 29,750: This would require an even more exaggerated rupee-per-peso conversion (roughly 350 rupees per peso), which again contradicts 3.5 rupees per peso.
- 300: This is close to 297.5 but would suggest rounding up or a slightly different rate; however, there is no justification to round to 300 when the precise calculation gives 297.50.
Considering the direct conversion, the only value that accurately reflects 85 pesos at 3.5 rupees per peso is 297.50 rupees. The other numbers arise from incorrect application or misinterpretation of the exchange rate.

01:220:300:01 INTERNATIONAL ECON Qz06: International macroeconomics and foreign exchange

If a pound of coffee beans costs 85 pesos in Mexico City and 10 pesos = 35 rupees, then the same pound of coffee should cost ___ rupees in New Delhi, all other things equal.

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