For instance, across regions of a country or between countries.

Is that different preferences for food lead to distinct relative prices in different regions or countries? Or is it the other way around: distinct relative prices lead to differences in preferences?

  • $\begingroup$ clearly it is both. $\endgroup$ – BB King Apr 26 at 19:57
  • $\begingroup$ @BB King. Can you explain then. $\endgroup$ – StatsScared Apr 27 at 5:01

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