Traders often buy foreign currency in the hope of making money when the currency’s value changes. For example, on April 15, 2015, one U.S. dollar could purchase 0.9428 euro, and one euro could purchase 126.457 yen. Let f(x) represent the number of euros you can buy with x dollars, andlet g(x) represent the number of yen you can buy with x euros.(a) Find a function that relates dollars to euros.(b) Find a function that relates euros to yen.(c) Use the results of parts (a) and (b) to find a function that relates dollars to yen. That is, find (g ∘ f) (x) = g(f(x) ).(d) What is g(f(1000) )?
Traders often buy foreign currency in the hope of making money when the currency’s value changes. For example, on April 15, 2015, one U.S. dollar could purchase 0.9428 euro, and one euro could purchase 126.457 yen. Let f(x) represent the number of euros you can buy with x dollars, andlet g(x) represent the number of yen you can buy with x euros.(a) Find a function that relates dollars to euros.(b) Find a function that relates euros to yen.(c) Use the results of parts (a) and (b) to find a function that relates dollars to yen. That is, find (g ∘ f) (x) = g(f(x) ).(d) What is g(f(1000) )?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Traders often buy foreign currency in the hope of making money when the currency’s value changes. For example, on April 15, 2015, one U.S. dollar could purchase 0.9428 euro, and one euro could purchase 126.457 yen. Let f(x) represent the number of euros you can buy with x dollars, and
let g(x) represent the number of yen you can buy with x euros.
(a) Find a function that relates dollars to euros.
(b) Find a function that relates euros to yen.
(c) Use the results of parts (a) and (b) to find a function that relates dollars to yen. That is, find (g ∘ f) (x) = g(f(x) ).
(d) What is g(f(1000) )?
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