When Jeremy Bought Gas, He Noticed the Convenience Store Offered

question 400

Multiple Choice

When Jeremy bought gas, he noticed the convenience store offered him a 2 percent reduction in price if he paid cash rather than if he used his credit card to pay for his purchase. The convenience store was offering him a

• A)trade discount.
• B)cash discount.
• C)promotional allowance.
• D)rebate.
• E)functional discount.

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Definitions:

Croissants

A flaky, buttery pastry of Austrian origin that is associated with French cuisine and often eaten for breakfast.

Producer Surplus

The difference between the amount producers are willing and able to sell a good for and the actual amount they do sell it for.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive in the market.

Producer Surplus

The gap between the price producers are ready to take for a good or service and the price they actually get.