Holding All Other Things Constant, an Increase in How Sensitive

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.