ECONOMICS
INCENTIVES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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decreased
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increased
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Either A or B
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None of the above
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Detailed explanation-1: -The term “discount” refers to the pricing system in which the price of a commodity (goods or services) is lower than its marked price listed price. It is simply to say, ‘discount’ is a percentage of the listed price.
Detailed explanation-2: -’Discount pricing’ refers to a range of strategies where the price of a product or service is decreased in the interest of generating interest, unloading excess inventory, or boosting sales. The effectiveness of discount pricing rests on consumers’ perception that they’re ‘getting a good deal’ for an offering.
Detailed explanation-3: -The term discount refers to the amount or percentage deducted from the normal selling price of something. The discount means a reduction in the price of a good or service. For example, we may ask the manager for a discount if the item is damaged.
Detailed explanation-4: -Example: Winter boots at Shoe Mart originally sold for $147. To determine the discount value, a sales professional multiplies that price by a discount of 0.25. The product of $147 and 0.25 is $36.75. Therefore, the boots have been discounted by $36.75.