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

Question

Naomi Hicks

Social Studies

23 October, 00:41

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

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Answers (1)

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Lindsay Mooney · Answer 1

law of one price

Explanation:

When same item sold in two separate market and there are no limitations on both sale or transit of items among markets, the cost of item in both markets ought to be same. This is recognized as the one-price rule.

The one price rule is an economic term which states that if certain factors are taken into account, the value of an equivalent asset or service have the similar global price irrespective of location.