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Suppose the price of a good is $ 8 0 0 in market A but only $ 6 0 0 in market B . On

Suppose the price of a good is $

800

in market A but only $

600

in market

B .

On the assumption that transportation and transaction costs are negligible, an arbitrager would

in market A and

in market B

.

buy; sell

sell; buy

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