An Exception to the Law of One Price Occurs If

question 36

Multiple Choice

An exception to the law of one price occurs if

• A)the good is not tradeable.
• B)demand for the good is stronger in some countries than in others.
• C)exchange rates are flexible, rather than fixed.
• D)interest rates differ across countries.

---

Definitions:

Calcium

A chemical element with the symbol Ca and atomic number 20, an essential component of bones, teeth, and shells, and plays a crucial role in cell signalling.

Chlorine

A chemical element with symbol Cl and atomic number 17, known for its strong oxidizing properties and use as a disinfectant.

Lewis Dot Structure

A diagrammatic method to represent the valence electrons of atoms within a molecule, indicating the bonding between atoms and the lone pairs of electrons.

Covalent Bonding

The chemical bonding between atoms through the sharing of electron pairs to achieve stability.