Illustrate what three of those assumptions likely are/ Business Economics
Q. One of basic economic laws is ‘law of one price.’ It says that provided certain assumptions one would expect that if free trade is allowed, price of goods in countries should converge. a. Can you list illustrate what three of those assumptions likely are? b. Should law of one price hold for labour also? Why or why not? c. Should it hold for capital more or less so than for labour? Why?
