Which of the following statements about cost- plus pricing is FALSE?
A) Markups tend to be lower on staple goods.
B) Markups tend to be higher on goods with few substitutes.
C) Markups tend to be higher on seasonal produce and perishables.
D) Markups tend to be higher on fresh produce.
E) Markups tend to be lower on items with inelastic demand.

Question

Quizplus · Accepted Answer

Markups tend to be higher on items with inelastic demand because consumers are less sensitive to price changes, allowing sellers to increase prices without significantly reducing demand.

Which of the Following Statements About Cost- Plus Pricing Is