If the price of a Big Mac is identical in US dollars both in New York and London, what economic concept does this illustrate?

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Both countries must have zero inflation ratesEach country experiences exactly 1% inflationThe currencies are fixed and pegged to one anotherPurchasing power parity is satisfiedThe exchange rate is determined by market speculation

Explanation

When a Big Mac costs the same in New York and London after currency conversion, it indicates that purchasing power parity (PPP) holds, meaning that the exchange rate adjusts so that identical goods have equal prices across countries.