Derek Is the Co-Owner of a Small Gift Shop

question 12

Essay

Derek is the co-owner of a small gift shop. His colleague, Ron wants the shop to hold a sale and reduce most prices by 10% to 20%. His parents owned a convenience store, and they said that they could always count on increased traffic when they cut prices. If a 10% price cut didn't bring enough purchases, then cut by 20%, and the cash flow would cover all their needs. Is Ron's suggestion economically viable? Why or why not?

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Definitions:

Occupation

The control and possession of a territory, by a foreign military power, often following military conquest or treaty.

Herbert Hoover

The President of the United States, who served his term between 1929 and 1933, was the 31st leader of the nation, and his presidency coincided with the beginning of the Great Depression.

Comfort and Security

The state of being free from worry or danger, often associated with a stable and fulfilling living environment.

SEC Regulations

SEC Regulations refer to the rules and regulations established by the Securities and Exchange Commission, the federal agency responsible for regulating the securities industry, enforcing federal securities laws, and overseeing the stock and options exchanges in the United States.