Word forms: 3rd person singular present tense exemplifies, present participle exemplifying, past tense, past participle exemplified verb If a person or thing exemplifies something such as a situation, quality, or class of things, they are a typical example of it.
Law Of One Price. What is the 'Law Of One Price'. The law of one price is the economic theory that the price of a given security, commodity or asset has the same price when exchange rates are taken into consideration. The law of one price is another way of stating the concept of purchasing power parity. The law of one price exists due to arbitrage opportunities.
Higher prices tend to reduce demand while encouraging supply, and lower prices increase demand while discouraging supply. Economic theory suggests that, in a free market there will be a single price which brings demand and supply into balance, called equilibrium price. Both parties require the scarce resource that the other has and hence there is a considerable incentive to engage in an exchange.