Multiple Choice
The following two graphs depict the equilibrium price of a pound of grapes in California and West Virginia, respectively. Assume the type and quality of the grapes being sold in the two states are identical. Further, assume grape sellers incur zero costs to transport grapes between the two states and there are no other barriers to trade. Use these graphs to answer the following questions.
-According to the law of one price,the price of grapes will
A) increase in California and decrease in West Virginia.
B) increase in California and increase in West Virginia.
C) not change in either California or West Virginia.
D) decrease in California and increase in West Virginia.
E) decrease in California and decrease in West Virginia.
Correct Answer:

Verified
Correct Answer:
Verified
Q28: Suppose the price of a Prada handbag
Q29: The following two figures depict the demand
Q30: The following table shows the number of
Q31: The following table shows the number of
Q32: If interest rates in Canada increase relative
Q34: A currency exchange rate is the<br>A) price
Q35: Currency appreciation occurs when<br>A) the demand for
Q36: The following two figures depict the demand
Q37: The following table shows the number of
Q38: Consider a situation of two cities linked