If an Identical Product Can Be Sold in Two Different

question 29

Multiple Choice

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

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

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Definitions:

Pressure

The application of force upon a surface by an object, fluid, etc., in contact with it or the stress or urgency of matters demanding attention.

Principal Types

Main or leading categories or kinds within a larger group or system.

Stress

A feeling of emotional or physical tension resulting from any event or thought that makes one feel frustrated, angry, or nervous.

Frustration

A negative emotional state that arises when one is prevented from reaching a desired outcome or goal.