33.Suppose that pencils sell in Canada for $3.50 per dozen, while in England, the price is 2.00. Assume that the current spot exchange rate (S/E) is 1.64. Given this scenario, which of the following will likely take place?* AH A)The price of pencils in Canada will fall B)Many pencils will move from Canada to England+ C) Both (A) and (B) D) Neither (A) nor (B)