Sellers Allow Customers to Use Credit Cards to Pay for Products

question 105

Multiple Choice

Sellers allow customers to use credit cards to pay for products and services for all of the following reasons except:

• A)To be able to charge more due to fees and interest.
• B)To lessen the risk of extending credit to customers who cannot pay.
• C)To speed up receipt of cash from the credit sale.
• D)To increase total sales volume.
• E)To avoid having to evaluate a customer's credit standing for each sale.

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Definitions:

Market-clearing Price

The price at which the quantity supplied of a product equals the quantity demanded, effectively clearing the market of any surplus or shortage.

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A maximum price legally allowed for a product or service to safeguard the interests of consumers.

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Refers to the sector of the economy that discovers, develops, produces, and markets drugs or pharmaceutical drugs for use as medications to be administered to patients, with the aim to cure them, vaccinate them, or alleviate symptoms.