Each day, you are faced with choices. you have to decide how to use your resources. for example, should you use some of your allowance money to buy new clothes? or should you save your money toward buying a computer? there are costs and benefits for each decision. governments are also faced with decisions, such as whether or not to use price controls. you already know about the costs and benefits of a specific price control called rent control. in this project, you will assess rent control while playing the role of a minimum wage earner.

Jaguar has full manufacturing costs of their s-type sedan of £22,803. they sell the s-type in the uk with a 20% margin for a price of £27,363. today these cars are available in the us for $55,000 which is the uk price multiplied by the current exchange rate of $2.01/£. jaguar has committed to keeping the us price at $55,000 for the next six months. if the uk pound appreciates against the usd to an exchange rate of $2.15/£, and jaguar has not hedged against currency changes, what is the amount the company will receive in pounds at the new exchange rate?