The Price of an Acre of Land in Rural Nevada

Multiple Choice

The price of an acre of land in rural Nevada is a few hundred dollars. The price of an acre of land in downtown New York is many millions of dollars. How does the law of one price explain this difference?

A) It cannot; there are unexplainable exceptions to the law of one price.
B) It suggests that in the long run price of land will be equalized regardless of location.
C) The law of one price depends on the ability of resources to move; location by its very nature cannot be mobile.
D) The law of one price applies only to resources involved in international trade.