The law of one price does not hold for

Question

Quizplus · Accepted Answer

The law of one price states that identical goods should have the same price in different markets. However, differentiated goods, which have unique characteristics and qualities, may not have the same price in different markets because consumers may be willing to pay more for those unique features. Agricultural goods and tradeable goods can be considered identical and should have the same price in different markets. The production of goods causing pollution does not affect the law of one price.

The Law of One Price Does Not Hold for