Figure 13-2 Above Represents the Six Steps in Setting Price

question 49

Multiple Choice

Figure 13-2 above represents the six steps in setting price.Which letter represents the step where a firm would estimate price elasticity?

• A)"A"
• B)"B"
• C)"C"
• D)"D"
• E)"E"

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Definitions:

Cost

The amount of money required to produce, purchase, or maintain a product or service.

Markup Percent

The surcharge applied to the acquisition cost of products for covering overhead and making a profit.

Selling Price

The final amount of money charged for a product or service, or the amount the consumer is willing to pay.

Markup Percent

The percentage increase over the cost price of a product to calculate the selling price.