A store sets a 20% markup on a product priced at $75. What is the selling price?

Tue, 05 May 2026 08:37:41 +0000

**Why Retailers Are Increasing Markups—And What It Means for Your Purchase** In an era of rising costs and shifting consumer habits, retailers are adjusting how they price goods. The simple question—*“A store sets a 20% markup on a product priced at $75. What is the selling price?”*—has gained unexpected traction online. This pricing model isn’t just a textbook example; it reflects real economic pressures and changing retail strategies across the US. Understanding how markups work helps shoppers assess value and make confident decisions in today’s dynamic market. ### Why Retailers Are Raising Markups in a Changing Economy Economic forces like supply chain disruptions, inflation, and rising operational costs are reshaping how stores price merchandise. After years of slimmer margins, many retailers are revisiting cost-plus pricing—adding a fixed percentage markup to the base product cost. A 20% markup on a $75 item sparks attention because it’s transparent and consistent with common industry practices. While not unprecedented, this specific example reflects a broader trend: businesses adjusting prices to balance fairness, sustainability, and consumer trust.