When Supermarkets and Department Stores Drop the Price on Well-Known

question 46

Multiple Choice

When supermarkets and department stores drop the price on well-known brands to stimulate store traffic,this is called ________.

• A) EDLP
• B) loss-leader pricing
• C) special-event pricing
• D) net pricing
• E) none of the above

---

Definitions:

Excise Taxes

Taxes imposed on specific goods, such as tobacco and alcohol, often intended to reduce consumption or generate revenue.

Marginal Tax Rate

The tax rate paid on an additional dollar of income.

Taxable Personal Income

The portion of an individual's earnings that is subject to taxation, after accounting for deductions and exemptions.

Proprietary Income

Income generated from owning a business or holding exclusive rights to a product or service.