If you travel to Mexico you will often see currency exchange businesses along the way as you approach the border
Even though each of these businesses is essentially "selling" the same product (i.e. Mexican pesos) how is it that some of them are able to charge more for the peso than others?
As tourists get closer and closer to the border their elasticity of demand for the peso becomes more inelastic. Therefore, currency exchange shops that are located closer to the border are able to sell the peso for a higher price since they realize that the tourist's options are getting smaller and smaller.
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