Question: Please answer every part fully and correctly for a good review! The theory of purchasing power parity (PPP) states that in the long-run exchange rates

Please answer every part fully and correctly for a good review!

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 sells for $175.23 in the United States. The exchange rate between the U.S. dollar and the Swiss franc (SFr) is $0.8245 per Swiss franc. Assuming that PPP holds true, how much does the same gaming console cost in Switzerland? SFr 180.65 SFr 223.16 SFr 212.53 SFr 191.28 Suppose the price of the gaming console in Switzerland was actually SFr 170.02. Assuming no transaction costs, transportation costs, or import restrictions, PPP predicts that the demand would _______ in Switzerland

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