If Jane Westerlund, Owner of a Picture Frame Store, Raises

question 18

Multiple Choice

If Jane Westerlund, owner of a picture frame store, raises the average price of a framed picture to $80 and the cost of goods sold is $36, what is the percentage markup on cost?

• A) 36 percent
• B) 55 percent
• C) 64 percent
• D) 100 percent
• E) 182 percent

---

Definitions:

Market System

A market system where investment, production, and distribution decisions are made according to supply and demand, and the prices for goods and services are established within a free pricing mechanism.

Mississippi River

The Mississippi River is a major North American river, flowing south from northern Minnesota to the Gulf of Mexico and serving as a key geographical and economic artery in the United States.

Command-and-control Regulation

A regulatory approach where the government sets specific limits for pollution emissions and may also dictate the technology or methods industries must use to comply.

Gasoline Tax

A levy imposed by governments on the sale of gasoline, typically used to fund transportation projects and environmental initiatives.