Suppose the following chart illustrates the domestic prices of three items (shoes, watches, and electric motors) of similar quality in the United States and Mexico.

If one dollar exchanges for five Mexican pesos and transportation costs are zero, Mexico will import
a. Shoes and watches, and the United States will import electric motors.
b. Shoes, and the United States will import watches and electric motors.
c. All three goods from the United States.
d. Electric motors, and the United States will import shoes and watches.

Transcribed Image Text:

Items Shoes Watches Electric motors United States (dollars) 20 40 80 Mexico (pesos) 80 180 600