A Trade Discount Is

question 236

Multiple Choice

A trade discount is:

• A) A reduction in price for prompt payment.
• B) Also called a rebate.
• C) A reduction in selling price below the list price.
• D) A term used by a seller to describe a cash discount granted to customers for prompt payment.
• E) A term used by a purchaser to describe a cash discount given to customers for prompt payment.

Apply the law of demand in different market scenarios.

Examine the effects of income variations on the demand for goods.

Distinguish between movements along the demand/supply curve and shifts in the demand/supply curve.

Understand the economic impacts of seasonal changes on supply and demand.

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Definitions:

Price Range

The spectrum of prices at which a particular product is sold in the market, from the lowest to the highest.

Price Elasticity

The measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating the sensitivity of consumers to price changes.

Substitutes

Products or services that can replace each other in use or consumption, thereby affecting consumer choices and market dynamics.

Product

An item or service that is created through a process and is offered for sale or use.