Assume that melons sell for $5 in Brazil when moose pelts sell for $10, still into Canada melons sell for $10 as well as moose pelts sell for $5. A person who buys moose pelts within Canada to sell into Brazil would be doing: (1) speculation. (2) the “invisible hand” trick. (3) arbitrage. (4) economies of scale. (5) exploitation.
How can I solve my economics problem? Please suggest me the correct answer.