By Drawing a Demand Curve with Price on the Vertical

question 35

Multiple Choice

By drawing a demand curve with price on the vertical axis and quantity on the horizontal axis,economists assume that the most important determinant of the demand for a good is

• A)consumer income.
• B)consumer tastes and preferences.
• C)the price of the good.
• D)the quality of the good.

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Definitions:

Transfer Prices

Prices assigned to transactions between related entities within a multinational corporation, often for accounting and tax purposes.

Decentralized Units

Separate divisions or departments within an organization that operate semi-autonomously, with their management responsible for certain decisions and operations.

Investment Centers

Segments or units within an organization for which the manager is responsible for generating revenue and controlling costs, often evaluated based on their return on investment.

Profit Centers

Segments or departments within a business that are responsible for generating profits and are evaluated on their profitability performance.