Recall the Application about the price of Big Macs in China and around the world to answer the following question(s).
The following table is taken from the Application. For several years, The Economist has measured the prices of Big Macs throughout the world and compared the price differences to exchange rates.

-According to the table, the price of Big Macs converted to U.S. dollars varies widely around the world. This shows that Big Macs do NOT follow the

Question

Recall the Application about the price of Big Macs in China and around the world to answer the following question(s).
The following table is taken from the Application. For several years, The Economist has measured the prices of Big Macs throughout the world and compared the price differences to exchange rates.
 
-According to the table, the price of Big Macs converted to U.S. dollars varies widely around the world. This shows that Big Macs do NOT follow the

Quizplus · Accepted Answer

The law of one price states that identical goods should have the same price in different markets once the prices are converted to a common currency. The fact that Big Mac prices vary widely around the world when converted to U.S. dollars shows that they do not follow the law of one price. Therefore, option C is the correct answer. The law of demand, exchange rate parity, and opportunity cost are not directly related to the price of Big Macs around the world.

Recall the Application About the Price of Big Macs in China