The Law of One Price

question 72

Multiple Choice

The law of one price

• A)states that consumers can only buy one good or service at a time.
• B)is a law passed by Congress that prohibits firms from selling a product at two different prices in the same market at the same time.
• C)states that consumers will pay any price for a product that has a perfectly inelastic demand curve.
• D)states that identical products should sell for the same price everywhere.

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Definitions:

Interval Scale

A type of scale used in measurements that allows for the comparison of differences between objects or events, but not the ratio between them, as it lacks a true zero point.

Ratio

A mathematical relationship between two numbers indicating how many times the first number contains the second.

Statistics

is the science of collecting, analyzing, interpreting, and presenting data.

Interpreting Information

The process of making sense of or assigning meaning to data, texts, or situations.