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Give one example of how you think the Law of One Price may hold.


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Answer:

The answer is below

Step-by-step explanation:

The law of one price may hold, when there is eliminatination of price differences through arbitrage opportunities between markets.

For example, considering the value of two currencies e.g Dollar and Pound is equal when a basket of identical goods is priced the same in both countries. This ensures that buyers have the same purchasing power across global markets.

User Kaz Yoshikawa
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