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Profit on style of dresses

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Reference no: EM131781349

Suppose that H&M's per unit cost of a style of dresses that it sells in its retail outlets is $20. H&M practices cost-plus pricing and charges a 250 percent markup. If this markup also maximizes H&M's profit on this style of dresses, we can conclude that the price elasticity of demand for this style of H&M dresses is:

A. -1.67
B. -1.40
C. -0.50
D. -2.00
E. -1.50

Reference no: EM131781349

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