Holding All Other Things Constant, an Increase in How Sensitive

question 80

Multiple Choice

Holding all other things constant, an increase in how sensitive customers are to price would affect:

• A)the markup under the absorption costing approach to cost-plus pricing.
• B)the markup used to compute the profit-maximizing price.
• C)both the markup under the absorption costing approach to cost-plus pricing and the markup used to compute profit-maximizing price.
• D)neither the markup under the absorption costing approach to cost-plus pricing nor the markup used to compute profit-maximizing price.

---

Definitions:

Felsic Composition

Rocks rich in silica and aluminum, characterized by lighter minerals like quartz and feldspar.

Decompression

The reduction in pressure exerted on a material, often leading to changes in its physical state or phase.

Melting Mantle

The process in which the Earth's mantle, the layer between the crust and the core, experiences partial melting to form magma.

Conduction

The transfer of heat or electricity through a substance without substantial movement of the substance itself.