The Law of One Price

question 10

Short Answer

The law of one price
says that the supply and demand of a product must not alter its price.
says that if a retailer puts an item on sale, all other retailers must match that price.
says that identical products should sell for the same price in all countries.
is a principle suggested by Canadian economists that means that all identical products in a given economy should be sold for the same price.
is the principle that to be competitive, a company must offer its product at only one price, that is, it should not negotiate with customers about the price.

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Definitions:

Contiguity

In learning theory, refers to the proximity in time or space between two events, which can influence the association formed between them.

Contingency

A future event or circumstance that is possible but cannot be predicted with certainty, often requiring planning for multiple outcomes.

Extinction

the process through which a conditioned response is diminished or eliminated, often due to the conditioned stimulus being presented without the unconditioned stimulus.

Spontaneous Recovery

The reappearance of a conditioned response after a period of lessened response.