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

Question

Quizplus · Accepted Answer

All of the provided options can lead to deviations from the law of one price. Trade barriers restrict the movement of goods across borders, leading to divergent prices. Transportation costs can also vary between regions, leading to different prices of the same good in different regions. Institutions such as taxes and regulations can similarly cause differences in prices. Finally, differences in consumer preferences can lead to different prices for the same good in different regions, as suppliers tailor their prices to local demand.

Which of the Following Explains Why the Law of One