Question

What does “unity of price” in a market mainly mean?

Options

• Prices of all different goods are always equal

• The same goods tend to have one common price at the same time within the market

• Prices never change over time

• Sellers can charge any price they like for the same good at the same time

Answer 1

The same goods tend to have one common price at the same time within the market

Explanation:

When market conditions exist, competition and communication ensure that the same commodity tends to be sold at one prevailing price at a given time in that market.