Exhibit 1A-9 Multi-Curve Graph

question 131

Multiple Choice

Exhibit 1A-9 Multi-curve graph

Exhibit 1A-9 represents a three-variable relationship. As the annual income of consumers falls from $50,000 (line A) to $30,000 (line B) , the result is a:

• A) rightward movement along each curve.
• B) leftward movement along each curve,.
• C) leftward shift from curve A to curve B.
• D) rightward shift from curve B to curve A.

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenues.

Capital Employed

The total amount of capital used for the acquisition of profits by a firm or project, including equity, debt, and long-term liabilities.

Transfer Pricing Policy

Regulations and practices concerning the pricing of goods, services, and intangibles transferred within an organization between different business units or divisions.