What Pricing Factor Would Managers Use If They Want to Establish

question 2

Multiple Choice

What pricing factor would managers use if they want to establish drink prices that will yield a 20% beverage cost?

• A) 4.0
• B) 4.5
• C) 5.0
• D) 5.5

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Definitions:

Lags

Delays between the time a policy is enacted and the time when its effects are felt in the economy.

Stagflation

An economic condition characterized by slow growth, high unemployment, and rising prices, presenting a challenge for policymakers as traditional economic tools may not effectively address the simultaneous issues.

Unemployment

The situation in which individuals who are capable of working and are actively seeking employment are unable to find a job.

Inflation Rates

The frequency at which prices for goods and services overall increase, devaluing the purchasing capacity.