If the Assumptions for the Theory of Purchasing Power Parity

Multiple Choice

If the assumptions for the theory of purchasing power parity are correct,then how much does an oil change for a Toyota Prius cost in Japan if the same oil change for the same Toyota Prius costs $29.95 in the United States and the exchange rate is $0.011 per Japanese yen?

A) This cannot be determined with the given information because oil changes are not tradable.
B) 2,723 yen
C) 0.33 yen
D) 272 yen
E) 3.29 yen