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If an Identical Product Can Be Sold in Two Different

Question 1

Multiple Choice
If an identical product can be sold in two different markets, and no restrictions exist on the sale or transportation of product between markets, the product's price should be the same in both markets. This is known as:

If an identical product can be sold in two different markets, and no restrictions exist on the sale or transportation of product between markets, the product's price should be the same in both markets. This is known as:


A) relative purchasing power parity.
B) interest rate parity.
C) the law of one price.
D) equilibrium.

Correct Answer:

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