If a commodity costs the same regardless of the currency used to purchase it or the country where it is sold, then _________________.

Question

Quizplus · Accepted Answer

Absolute purchasing power parity refers to the idea that in the absence of transportation and other transaction costs, identical goods should have the same price in different countries when prices are expressed in a common currency. This concept directly relates to the scenario where a commodity costs the same regardless of the currency used or the country where it is sold.

If a Commodity Costs the Same Regardless of the Currency