Every time you purchase a new product you are encountering what is known as a markup.  Markups are a necessary evil because without them stores would not be able to exist and neither would manufacturers.

While markups may be necessary for sellers to make a profit, not all markups are equal.  For this reason, you should always remember to shop around before making a purchase.

Check out this week’s Math in The News article, “Congress Targets Colorado Company in Drug Markup Investigation,” about a pharmacy that is under investigation for unfair markup percentages.

Can you think of a time when you felt a product was marked up at an unfair price?