Example

• Ceramics bowl = ITL 15,000

• CD player = $30

• Relative price of an Italian bowl to a US CD player means how many bowls a CD player is worth - need exchange rates

Ex Rate: 1500 1800 2000

Bowl $10 $8.33 $7.5

CD $30 $30 $30

Rel Price 3 3.6 4

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