Suppose that a carton of cigarettes costs $55 in Springfield,Illinois but is just $50 in nearby St.Louis,Missouri.Use a supply and demand diagram to illustrate and explain what you would expect to happen in each location,assuming the law of one price holds.What is the most likely reason that a price difference persists between these two nearby locations?

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The Answer of Suppose that a carton of cigarettes costs $55 in Springfield,Illinois but is just $50 in nearby St.Louis,Missouri.Use a supply and demand diagram to illustrate and explain what you would expect to happen in each location,assuming the law of one price holds.What is the most likely reason that a price difference persists between these two nearby locations?

Suppose That a Carton of Cigarettes Costs $55 in Springfield,Illinois