If the Price of a Toyota Camry Is Y2,000,000 and the Price

question 4

Multiple Choice

If the price of a Toyota Camry is Y2,000,000 and the price of a Ford Fusion is $20,000,according to the law of one price,the exchange rate between the yen and the dollar should be

• A) Y100 = $1.
• B) $100 = Y1.
• C) Y1,980,000 = $1.
• D) The law of one price does not apply since the goods are differentiated.

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Definitions:

Third Party

An individual or group besides the two primarily involved in a transaction or legal situation, often providing additional services or involvement.

Agent

A person or entity authorized to act on behalf of another person or entity, known as the principal, in business transactions or legal matters.

Agreement

One of the four elements necessary for a contract; consists of an offer made by one party, the offeror, and the acceptance of the offer by another party, the offeree.

Principal

A principal can refer to the main party in a transaction or agreement, often used to denote the primary source of obligation or responsibility.