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If the Price of Yoo-Hoo Is $US2

Question 18

Multiple Choice

If the price of Yoo-hoo is $US2.00 in New York and $US1.00 in St.Petersburg (after converting the rubles to dollars) ,you might expect __________.


A) people to buy Yoo-hoo in St.Petersburg and sell it in New York until the price was the same in each country.
B) people to buy Yoo-hoo in New York and sell it in St.Petersburg until the price was the same in each country.
C) people to buy Yoo-hoo in St.Petersburg and sell it in New York and the price difference would remain.
D) the price difference to exist forever.
E) None of the above is correct.

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