Which term refers to compensation under a licensing agreement?

A Gucci bag sells for $120 in Italy and $240 in the United States due to the differences in the costs of distributing the product in the two countries. This phenomenon is called a(n) ________ problem

A) opportunity cost B) market pricing C) tactical pricing D) price escalation E) transfer pricing

A given percentage increase in consumer demand can lead to a larger percentage increase in the demand for plant and equipment necessary to produce the additional output. Economists refer to this as ________

A) derived demand B) inelastic demand C) the acceleration effect D) a straight rebuy E) the sales cycle