"A commodity costs the same regardless of what currency is used to purchase it." This is a statement of:

Question

Quizplus · Accepted Answer

The law of one price (LOP) states that in the absence of transportation costs and barriers to trade (like tariffs), a good should sell for the same price in all markets when prices are expressed in a common currency. This principle underlies the concept that a commodity costs the same regardless of the currency used to purchase it.

"A Commodity Costs the Same Regardless of What Currency Is