What will happen to the price of the computer in yuan

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Reference no: EM13244974

(a) Dell sells its computer for $2000=14000 Yuan in China. If the Yuan/dollar exchange rate goes up 10% (dollar value increase 10%), what will happen to the price of the computer in Yuan? How about the demand?

(b) Some of key inputs of Dell computer are imported from China, what will be the effect on Dell's cost of production when the Yuan/dollar exchange rate increases 10%?

Reference no: EM13244974

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