3. The law of one price The law of one price states that: The cost of an individual good should be higher in countries with higher productivity The nominal exchange rates should always be the same as the real exchange rates, both in the short run and in the long run In ideally efficient markets, the real purchasing power of a currency should be the same regardless of where it is spent Which of the following scenarios illustrates why the law of one price may not hold? Check all that apply. The formation of the European Union creates a custom union among its member states, where internally traded goods are not subject to custom duties, tariffs, or import quotas. Steel is very heavy, and the cost of shipping is measured by weight. Stationery, such as writing paper, is relatively light and can be shipped in bulk