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:

Airline Industry

The global sector involving the provision and management of air travel services, including passenger and cargo transportation.

Workers' Compensation

A system of insurance that provides financial and medical benefits to employees injured in the course of employment.

Strict Liability

A legal principle where a party is held responsible for damages or loss, regardless of fault or intention.

Employer Negligence

A situation where an employer fails to provide a safe working environment, leading to injury or damage to employees.