The law of one price The theory of purchasing power parity (PPP) states that in the long-run exchange rates between two countries adjusts so that the price of an identical good is the same when expressed in the same currency A gaming console costs E175.23 in England. The spot rate is currently $2.0988 per pound Assuming that PPP holds true what is the price of the gaming console in the United States? 1 O $96.01 O $312.60 O $404.55 O $367.77 30378 8330378 Suppose the price of the gaming console in the United States was actually $404.55. Assuming no transaction costs, transportation costs, or import restrictions, what does PPP predict would happen to the demand for the gaming console in the United States? O The demand for the gaming console would increase in the United States. O The demand for the gaming console would decrease in the United States