Suppose that Brazil and Mexico both produce bananas, Brazil uses the real as their currency whereas Mexico uses the peso. The exchange rate between these two countries is 0.5 reals per peso [E reals/pesos = 0.5]. We also know that the peso dollar exchange rate is 10 pesos per dollar [E pesos/$ = 10]. In Mexico, bananas sell for 10 pesos per kilo of bananas. Suppose bananas sell for 10 pesos per kilo in Mexico. If LOOP holds, what is the price of bananas in Brazil? What is the price in the United States? Suppose the price of bananas in Brazil is 5.5 reals per kilo. At the same time, the price of bananas in the United States is $1.00 per kilo. Based on this information, where does LOOP hold? How will banana traders respond to the previous situation? In which markets will traders buy bananas? Where will they sell them? What will happen to the prices of bananas in Mexico, Brazil, and the United States? You can assume that the buying and selling will not affect the exchange rates, just the prices in the domestic markets.