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

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Quizplus · Accepted Answer

The Law of One Price states that identical products should be sold for the same price in different markets with no restrictions on sale or transportation costs. This concept is used in the study of international trade and finance. Relative purchasing power parity refers to the idea that exchange rates should adjust to equalize the prices of identical baskets of goods and services in different countries. Interest rate parity refers to the idea that exchange rates will adjust to offset differences in interest rates between countries. Equilibrium is a state of balance between supply and demand. Among the given options, only the Law of One Price is the best match for the described scenario.

If an Identical Product Can Be Sold in Two Different