In practice, people often use The Big Mac index, which provides an interesting perspective into the determination of foreign exchange rates; in the United States, a Big Mac is selling at a price of $5.06, while it costs 5.85 GEL in Georgia. The official exchange rate is $1 = 2.41 GEL. Is GEL overvalued or undervalued? What should be the implied exchange rate? What will be your answer if Big Mac costs 12.85 GEL in Georgia?