Suppose that a chair in Germany sells for 100 euros. The exchange rate changes from $1 = 1 euro to $1 = 4 euros. How does this change affect the equivalent U.S. dollar price of the chair?

a. The price decreases from $100 to $25.
b. The price increases from $100 to $400.
c. The price decreases from $400 to $100.
d. The price increases from $25 to $400

a. The price decreases from $100 to $25.