The Price That One Subsidiary Charges Another Subsidiary of Internal

question 39

Multiple Choice

The price that one subsidiary charges another subsidiary of internal good transfers is called an:

• A) Transfer price
• B) Transaction price
• C) Strike price
• D) Subsidiary price

---

Definitions:

Price of Leather Jackets

The monetary value at which leather jackets are offered for sale in the market.

Demand

The amount of a product or service that buyers are prepared and capable of buying at different price levels over a specified time frame.

Inverse Demand Function

A formula that represents the maximum price consumers are willing to pay for a given quantity of a good, illustrating how price is affected by changes in demand levels.

Engel Curve

A graph that shows the relationship between a consumer's income and the quantity of a good purchased, illustrating how spending varies with income.