In Munich a bratwurst costs 5 euros; a hot dog costs $4 at Bostons Fenway Park. At

Question:

In Munich a bratwurst costs 5 euro’s; a hot dog costs $4 at Boston’s Fenway Park. At an exchange rate of $1.05/per euro, what is the price of a bratwurst in terms of a hot dog? All else equal, how does this relative price change if the dollar depreciates to $1.25 per euro? Compared with the initial situation, has a hot dog become more or less expensive relative to a bratwurst?

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...