Which of the following explains why the law of one price might NOT hold?

Question

Quizplus · Accepted Answer

All of these factors can act as barriers to the law of one price. Trade barriers can limit or prohibit the trade of certain goods between different countries leading to price differences; transportation costs can add to the price of goods in one location versus another; differences in institutions, such as legal systems, can lead to price distortions; and differences in preferences and tastes can lead to some goods being more in demand in one location, allowing them to command a higher price.

Which of the Following Explains Why the Law of One