Mike's Appliances Bought a Refrigerator for $480

question 55

Multiple Choice

Mike's Appliances bought a refrigerator for $480.The initial price on the refrigerator was $950,but it was ultimately sold for $825.What were initial and maintained markups,respectively?

• A) 36.3 percent; 57.0 percent
• B) 46.3 percent; 58.2 percent
• C) 49.5 percent; 41.8 percent
• D) 50.5 percent; 58.2 percent
• E) 63.7 percent; 43.0 percent

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Definitions:

Tax

A required monetary payment or different kind of tax levied on a taxpayer by government entities to finance government operations and public services.

Supply Function

A mathematical representation showing the relationship between the quantity of a good supplied by producers and various factors influencing that quantity, such as the good's price.

Demand Function

A mathematical representation showing the quantity of a good that consumers are willing and able to purchase at various prices.

Subsidy

A financial contribution granted by the government to reduce the production costs and encourage the supply of certain goods or services.