Offering a CUMULATIVE Quantity Discount Seeks To

question 30

Multiple Choice

Offering a CUMULATIVE quantity discount seeks to:

• A) reduce the seller's shipping costs.
• B) eliminate some marketing function.
• C) shift some of the storing function to the buyer.
• D) encourage the buyer to make additional purchases.
• E) All of these alternatives are correct.

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Definitions:

MPS

The marginal propensity to save refers to the portion of each additional dollar of income that is set aside for savings instead of being spent.

Induced Consumption

Consumer spending that increases when income increases and decreases when income decreases.

Autonomous Consumption

Consumer spending that does not change in response to fluctuations in income, reflecting basic, non-discretionary expenditures.

Disposable Income

The funds set aside by households for spending and saving after income tax subtractions.