Question: A steak dinner in the U.S. costs $25, while the exact meal costs 300 pesos across the border in Mexico. Purchasing power parity implies that

A steak dinner in the U.S. costs $25, while the exact meal costs 300 pesos across the border in Mexico. Purchasing power parity implies that the Peso/$ exchange rate is: (Please explain the calculation.)

a. P12.50/$1 b. P12.75/$1 c. P11.50/$1 d. P11.25/$1 e. P12.00/$1

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