Prices for many goods are higher in the city of Shenzhen on the mainland of China than in the city of Hong Kong. An article in the Economist notes that "individuals can arbitrage these differences through what effectively amounts to smuggling." Source: "Restrictions on Travel to Hong Kong by Shenzhen Residents," Economist , April 13, 2015. The article means that individuals canA. A buy the product in Hong Kong and sell it in Shenzhen so eventually the price in Shenzhen will decrease and the price in Hong Kong will increase. B. buy the product in Shenzhen and sell it in Hong Kong so eventually the price in Hong Kong will decrease and the price in Shenzhen will increase C. rely on differences in demand for the product to even out the price changes. D. buy the product elsewhere in the world and sell t in these two markets Ultimately, you would expect the result of individuals engaging in this arbitrage to be similar
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