GEOGRAPHICAL PRICE PATTERNS

in a well-organized competitive market , there tends to be at any one time and place a single prevailing price . This is due to the action of professional speculators or "arbitragers" who keep their ear to the market and , as soon as they learn of any price difference,buy at the cheaper price and sell at the dearer price ,thereby making a profit for themselves-at the same time tending to equalize the price.1
Two markets at considerable distance from each other may have different price.Wheat in Chicago sell for a few cents more per bushel than identical wheat in Kansas city,because of shipping,insurance,and interest charges involved in transportation,if ever the price in Chicago should rise by more than the few cents of shipping costs,speculators will buy in Kansas city and ship to Chicago,thereby bringing the price up in Kansas city and down in Chicago to the normal maximum differential.
Nobody legislates these patterns.they follow from supply and demand.