If the price of Yoo-hoo is $2 in New York and $1 in St. Petersburg, Russia (after converting the rubles to dollars), you might expect:

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Quizplus · Accepted Answer

This scenario describes a basic principle of arbitrage, where individuals or entities buy a product in one market where it's cheaper (St. Petersburg) and sell it in another where it's more expensive (New York) to profit from the price difference. This process continues until the price difference is eliminated or significantly reduced, assuming no barriers to trade or significant transaction costs exist.

If the Price of Yoo-Hoo Is $2 in New York