If demand is taken into account, firms that use cost-plus pricing can adjust price by
A) letting sales fall, but hold the markup constant if demand falls.
B) lowering markups on price-elastic goods and raising markups on price-inelastic goods.
C) letting sales rise, but hold the markup constant if demand rises.
D) raising markups on price-elastic goods and lowering markups on price-inelastic goods.
B
You might also like to view...
Which of the following will lead to a decrease in the value of Spanish income per capita in dollars?
A) An increase in the value of the Spanish income per capita in Euro B) A decrease in the dollar/euro exchange rate C) An increase in the dollar/euro exchange rate D) A decrease in the income per capita of U.S.
If real GDP is $1,200 billion, the population is 60 million, and aggregate hours are 80 billion, labor productivity is
A) $6.67 an hour. B) $15.00 an hour. C) $150 an hour. D) $5.00 an hour. E) $20,000.