If Demand Is Taken into Account, Firms That Use Cost-Plus

Multiple Choice

If demand is taken into account, firms that use cost-plus pricing can adjust price by

A) letting sales fall, but hold the markup constant if demand falls.
B) lowering markups on price-elastic goods and raising markups on price-inelastic goods.
C) raising markups on price-elastic goods and lowering markups on price-inelastic goods.
D) letting sales rise, but hold the markup constant if demand rises.