Which of the following is an economic principle that states all identical goods in different markets must have the same price?

Question

Quizplus · Accepted Answer

The Law of One Price is the economic principle that states if two or more markets are selling an identical good, then the price of that good should be the same in each market when prices are expressed in a common currency, assuming no transportation costs and no differential taxes applied. This principle underlies the concept of arbitrage, where discrepancies in prices across different markets are exploited for profit, leading eventually to a single price.

Which of the Following Is an Economic Principle That States