The Following Two Graphs Depict the Equilibrium Price of a Pound

question 33

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.

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