Which of the Following Statements Regarding Quantity Discounts Is Most

question 121

Multiple Choice

Which of the following statements regarding quantity discounts is most accurate?

• A)Cumulative quantity discounts encourage repeat buying by a single customer to a far greater degree than do noncumulative quantity discounts.
• B)Noncumulative quantity discounts encourage repeat buying by a single customer to a far greater degree than do cumulative quantity discounts.
• C)Quantity discounts are primarily used to undercut competitors' prices.
• D)Noncumulative quantity discounts encourage smaller long-term repeat purchases rather than less frequent large quantity purchases.
• E)Quantity discounts are designed to reward wholesalers and retailers for marketing functions they will perform in the future.

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Definitions:

Equilibrium Interest Rate

The interest rate at which the demand for funds equals the supply of funds, balancing savings and investments in an economy.

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity supplied.

Loanable Funds

The money available in the banking system for lending to businesses or consumers, influenced by interest rates and monetary policy.

Demand for Loanable Funds

The Demand for Loanable Funds represents the relationship between the interest rate and the total amount of loans that borrowers are willing to take at that rate.