How might you account for the discrepancy

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If $30 can buy a dozen roses in the United States, and purchasing power parity holds, then $30 should also be enough to buy a dozen roses in Turkey—or, more specifically, the Turkish lira equivalent of $30 should be sufficient to buy a dozen roses in Turkey. If purchasing power parity does not hold between the two nations, how might you account for the discrepancy? Select all that apply. A. identical roses B. non-identical roses C. transportation costs D. roses are not perfectly tradable E. prices may not have fully adjusted

Reference no: EM13977072

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