In this economic system, private citizens own all of the factors of production to make products and create profits.

The law of one price should hold well for

A) differentiated products. B) any individual goods traded internationally. C) homogeneous goods. D) All of the above.

A recent breakthrough in the field of genetics will allow scientists to insert into banana trees a human gene that protects against deadly childhood diseases. This is an important breakthrough for some less-developed countries because they cannot afford the traditional vaccines for these diseases. What effect might this breakthrough have on these countries' aggregate supply curves?