1A. Suppose that a grande latte at a Starbucks in Tijuana is priced at 71.18 pesos. The current spot rate for pesos is $0.0492/peso. If the law of one price holds, what would be your best guess for the price of a similar drink in San Diego? a. $71.18 b. $2.85 c. $3.50 d. None of the above answers are true. 1B. Which of the follow could explain why the price of a grande latte at a Starbucks in San Diego violates the law of one price compared to a latte in Tijuana? a. The price of real estate in San Diego is much higher than in Tijuana. b. There is an impenetrable wall along the US-Mexico border. c. Mexican-run businesses offer a level of hospitality that is incomparable to other countries. d. All of the above are possible explanations