Leather sold in the country of Zanasia costs the same as leather sold in the countries of Meramba, Chidean, and Pareuim. In the context of currency values, this exemplifies:

Question

Quizplus · Accepted Answer

The law of one price states that in the absence of transaction costs and assuming perfect market conditions, identical goods should have the same price when expressed in the same currency. The scenario where leather costs the same in Zanasia, Meramba, Chidean, and Pareuim, regardless of the country, exemplifies this economic principle.

Leather Sold in the Country of Zanasia Costs the Same