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The following two graphs depict the equilibrium price of a pound of grapes in California and West Virginia, respectively. Assume the type and quality of the grapes being sold in the two states are identical. Further, assume grape sellers incur zero costs to transport grapes between the two states and there are no other barriers to trade. Use these graphs to answer the following questions.
-Which of the following pairs of prices is consistent with the law of one price?
Income Distribution
The way in which the total income of an economy is distributed among its population.
Rich
Having a great deal of wealth, assets, or resources; affluent.
Poor
Individuals or communities that lack financial resources and essentials for a minimum standard of living.
Poverty Threshold
The minimum level of income deemed adequate in a particular country to maintain a standard of living.
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