When Setting Prices for Merchandise, Retailers Must Decide on the Markup

question 114

Multiple Choice

When setting prices for merchandise, retailers must decide on the markup, the markdown, and the ________ for markdowns.

• A) relevance
• B) necessity
• C) percentage
• D) timing
• E) consequence

---

Definitions:

Quantity Effects

The changes in the amount of goods or services produced or consumed in response to changes in price or other factors.

Total Revenue

The overall financial income a company acquires from its commercial activities, including the sale of goods and provision of services, within a certain period.

Downward-Sloping

Refers to a curve or line that decreases in value as it moves from left to right, often used in economics to describe demand curves where quantity demanded decreases as the price increases.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of the good that consumers are willing and able to buy.