The Basic Tools of Supply and Demand Apply to

question 109

Multiple Choice

The basic tools of supply and demand apply to

• A) markets for goods and services and to markets for labor services.
• B) markets for goods and services but not to markets for labor services.
• C) markets for goods and services but not to markets for factors of production.
• D) all markets except those in which demand is derived demand.

---

Definitions:

Transfer Price

The price charged for goods or services transferred between divisions or branches of the same company.

Pump Division

A designated segment of a business focused on the production or sales of pumps.

Pool Products Division

A segment within a company focused on the development, production, and sales of products related to swimming pools.

Variable Medical Expenses

Costs in healthcare that vary depending on the number and types of services used.