A Temporary Price Reduction That Is Marked on the Package

question 81

Multiple Choice

A temporary price reduction that is marked on the package of a product is a:

• A)bonus offer.
• B)price-off.
• C)premium.
• D)bad idea, because the retailer may not honor the price.

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Definitions:

Normal Goods

Goods whose demand increases when consumer income rises, and falls when consumer income decreases.

Consumer Incomes

The total amount of income earned by consumers, influencing their spending patterns and demand for goods and services.

Complementary Goods

Goods that are consumed together because the use of one enhances the use of the other, such as computers and software.

Normal Good

A good for which demand increases as the consumer’s income increases, holding all other factors constant.