6 China and the U.S. both produce two goods: tradable cellular phones, and non-tradable haircuts. Each good is produced in competitive markets in a single process. Workers receive the marginal productivity for their labor. There are no trade costs for cellular phones, while for haircuts they are prohibitively high. The wage for per hour work is w RMB (Yuan) in China and w* dollars in U.S.. Suppose that, in one hour, a Chinese laborer produces 3 cell phones and an American laborer produces 15 cellular phones, while one laborer produces only one haircut in both countries. Suppose the price of a cellular phone is 2 RMB. Let E be the nominal exchange rate of RMB per dollar. If E = 5, what is the price of a cellular phone in dollars? (A) 0.8 (B) 0.5 (C) 0.4 (D) 0.3