Solve the Problem

question 47

Multiple Choice

Solve the problem. Round rates to the nearest whole percent and dollar amounts to the nearest cent.
-The Jewelry Store priced its entire stock of sterling silver at $1,394. The original price was $2,022. Find the percent of markdown on the original price.

• A)31%
• B)69%
• C)45%
• D)145%

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Definitions:

Arbitrage

The simultaneous buying and selling of securities, currency, or commodities in different markets or in derivative forms to take advantage of differing prices for the same asset.

Price Discrimination

A pricing strategy where different prices are charged to different consumers for the same product or service, often based on their willingness to pay.

Deadweight Loss

The loss of economic efficiency that occurs when the equilibrium for a good or a service is not achieved or is unattainable.

Price Discriminate

The practice of selling the same product or service at different prices to different customers, often based on their willingness to pay.