In Stores,it Is Common to Find Seasonal Products Marked Down

question 55

Multiple Choice

In stores,it is common to find seasonal products marked down when the season ends.What explains this behavior?

• A) The law of demand is being used to increase the quantity demanded.
• B) The store is trying to increase its customers' demand for the product.
• C) The store manager must be trying to drive away customers by selling low quality products.
• D) The store is trying to increase its consumer's incomes by increasing their purchasing power.
• E) The store is trying to sell the goods and realizes that they are substitutes for other goods whose prices have risen.

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Definitions:

Net Amounts

The remaining values after all deductions, such as discounts or expenses, have been made.

Discounts Lost

Costs incurred by a company for not taking advantage of purchase discounts offered by suppliers or creditors.

Late Payments

Late payments are amounts due that are not paid by their due date, often resulting in additional charges or penalties.

Inventory Returns Estimated

The anticipated amount of goods that will be returned to inventory due to cancellations, defects, or unsatisfactory products.