A Normal Good Is One

question 283

Multiple Choice

A normal good is one

• A) for which demand increases when income increases.
• B) with a downward sloping demand curve.
• C) for which demand increases when the price of a substitute rises.
• D) none of the above

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Definitions:

Intra-entity Transfer

Transactions that occur between divisions or units within the same company, often involving the transfer of goods or services.

Depreciable Asset

An asset that loses value over time or with use and for which depreciation can be accounted to spread the cost over its useful life.

Transfer Price

The price at which goods and services are sold between divisions within the same company or between subsidiaries of the same parent company.

Intra-entity Transfer

Transactions involving the exchange of goods, services, or resources between divisions within the same entity.