If an Identical Product Can Be Sold in Two Different

question 22

Multiple Choice

If an identical product can be sold in two different markets, and no restrictions exist on the sale or transportation of product between markets, the product's price should be the same in both markets. This is known as:

• A) relative purchasing power parity.
• B) interest rate parity.
• C) the law of one price.
• D) equilibrium.

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Definitions:

Point-of-purchase Display

Marketing or advertising materials placed where products are sold, typically at retail locations, to influence consumer buying decisions.

Institutional Advertising

A form of advertising aimed at promoting a company's image or reputation rather than selling a specific product or service.

Testimonials

Statements made by customers or clients about their experiences with a product or service, used as a form of endorsement in marketing.

Nutritional Facts

Information provided on food packaging that details the content of nutrients, vitamins, and calories within that food product.