Which of the Following Does Not Explain Why the Law

question 19

Multiple Choice

Which of the following does not explain why the law of one price fails?

• A) products have different standard sizes and features in different countries
• B) transporting a good to a distant market raises its cost
• C) goods imported across borders are often subject to tariffs
• D) nominal exchange rates do not change as often as product prices
• E) firms may set prices to be competitive in local markets regardless of production and distribution costs

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Definitions:

Muscle Contraction

The process by which muscle fibers shorten, generating force and movement.

External Epithelium

The outermost layer of cells covering the body surfaces and organs, serving as a protective barrier.

Invertebrates

Animals without a backbone. In vertebrates, the hypothalamus produces neurohormones.

Vertebrates

Animals with a backbone or spinal column, which includes mammals, birds, reptiles, amphibians, and fish.