A Producer Sells an Item to a Wholesaler for $4

question 150

Multiple Choice

A producer sells an item to a wholesaler for $4.00, and the wholesaler uses a markup of 25 percent on its selling price. What will be the cost to the retailer?

• A) $4.75
• B) $4.87
• C) $5.03
• D) $5.33
• E) $5.45

---

Definitions:

Seller

An individual or entity that offers goods or services for sale.

Tax

is a compulsory financial charge or some other type of levy imposed on a taxpayer by a government organization in order to fund government spending and various public expenditures.

Elasticity

A measure of how much the quantity demanded or supplied of a good changes in response to a change in price or other economic variable.

Buyer

A person or entity that purchases goods or services from another in exchange for money.