Post Utme Pan Atlantic University 2025 Commerce Question 34

Practice objective / multiple choice question 34 from the 2025 Post Utme Pan Atlantic University Commerce examination.

Post Utme Pan Atlantic University 2025 Commerce Objective / Multiple Choice
Question 34 POST_UTME_PAN-ATLANTIC_UNIVERSITY • 2025 • COMMERCE • objective

In a perfectly competitive market, the law of one price dictates that the price of a good will be equalized across all markets, assuming that the good is perfectly mobile. However, if the good is not perfectly mobile, the price may differ across markets due to differences in demand and supply. Which of the following is a correct statement regarding the law of one price?

Answer Options

A. The law of one price only applies to perfectly competitive markets.
B. The law of one price is a fundamental concept in microeconomics.
Correct Answer C. The law of one price assumes that the good is perfectly mobile across markets.
D. The law of one price is a consequence of the law of supply and demand.
Correct Answer
C
Correct Option:
The law of one price assumes that the good is perfectly mobile across markets.

About This Question

This is Post Utme Pan Atlantic University 2025 Commerce Question 34. It is one of the objective questions from the 2025 Post Utme Pan Atlantic University Commerce examination.

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