An Electronics Store Usually Sells Televisions for $1000 but Business

question 121

Multiple Choice

An electronics store usually sells televisions for $1000 but business has been slow and it needs to sell them before the new model comes out.The shop buys the televisions in bulk for $550 each.The manager estimates they can only sell the old televisions for $375 each.What should the store do?

• A)Never sell anything for less than they paid for it
• B)Cut their losses and sell them for $375
• C)Sell the televisions back to the bulk seller
• D)Give the televisions to their employees as a bonus

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Definitions:

Hovland

Carl I. Hovland, a psychologist known for his work in communication and persuasion theory.

Source Characteristic

Attributes of the person or entity presenting information that influence the persuasiveness of a message.

Limited Time

A restricted period during which something can occur or must be completed.

Scarcity

Refers to the fundamental economic problem of having seemingly unlimited human wants and needs in a world of limited resources.