If an Identical Product Can Be Sold in Two Different

question 36

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 known as:

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

---

Definitions:

Identity Development

The formation of a distinct personality of an individual regarded as a persisting entity in a particular stage of life in which various factors contribute to one's sense of self.

Commitment

The state or quality of being dedicated to a cause, activity, or relationship, showing a willingness to stay engaged over time.

Foreclosure

A legal process by which a lender tries to recover the balance of a loan from a borrower who has stopped making payments by forcing the sale of the asset used as the collateral for the loan.

Psychosocial Stage

A stage in Erik Erikson's theory of human development, where each stage is characterized by a specific psychological challenge that contributes to a person's social and psychological growth.