Question

Fill in the blanks to complete the passage about the law of one price. Drag word(s) below to fill in the blank(s) in the passage. must According to the law of one price, identical goods sold sell for the same price, except for costs associated with Those costs reflect and the cost of shipping. According to the law of one price, if the price of a good in one location does not match the price of the same good in a different location, sellers will increase until prices in both locations are equal supply in the location where the good is in different locations less expensive at different times trade barriers production movement between locations currency exchange more expensive

Answer 1

Consider the following explanation.

Step-by-step explanation:

According to the law of one price, identical goods

sold IN DIFFERENT LOCATIONS must sell for the same

price, except for costs associated with MOVEMENT BETWEEN LOCATIONS.

Those costs reflect TRADE BARRIERS and the cost of shipping.

According to the law of one price, if the price of a good

in one location does not match the price of the same good in

a different location, sellers will increase supply

in the location where the good is MORE EXPENSIVE

until prices in both locations are equal.