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earnstyle [38]
3 years ago
14

One possible reason as to why consumers respond to sales is that by displaying a "high" regular price and a "low" sale price, sa

les provide consumers with a reference point to interpret the prices being offered. True False
Business
1 answer:
Olenka [21]3 years ago
8 0

Answer:

True

Explanation:

Experiments regarding consumer behavior have shown that consumers usually expect a product to have a certain price that serves as a reference price that they use to determine if a retailer's price is high (more expensive than the reference price) or low (cheaper than the reference price).

It is normal (but unethical) that some retailers increase their prices a little before starting a sales campaign, since a higher reference price will make consumers believe that the offer is even better.  

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Even though many ballparks practice price discrimination between adults and children in selling tickets, such discrimination is
IRISSAK [1]
Discrimination is not applied at the concession stands because there can be exchange of the product from children, who'd buy it at a lower price, to adults.
3 0
3 years ago
Read 2 more answers
The difference between nominal GDP and real GDP is that:
Elenna [48]

Answer:

a. real GDP adjusts the value of goods for changes in the price level and nominal GDP does not.

Explanation:

The nominal GDP is calculated by using current prices without adjusting the inflation factor int the prices of goods that are accounted for in the total GDP value. On the other hand the real GDP is calculated by adjusting inflation int he pricesof the goods which included in total GDP value. So the correct option is a. real GDP adjusts the value of goods for changes in the price level and nominal GDP does not.

4 0
2 years ago
The Regal Cycle Company manufactures three types of bicycles—a dirt bike, a mountain bike, and a racing bike. Data on sales and
Cloud [144]

Answer: (1) From the income statement it is clear that the racing bike cannot meet its fixed cost because it cannot provide a contribution towards meeting the fixed cost (2) it should be discontinued since it cannot provide a contribution towards meeting its fixed cost (3)A Dirk bike has a profit of $26,700, A mountain bike has a profit of $39,600, A racing bike has a loss of ($25,000) Total profit for the product line is $41,300

Explanation:

Income statement

Dirk bike mountain bike. Racing bike. Total

$ $ $ $

Sales. 264,000. 407,000 256,000 927,000

Less :Variablecost 114,000. 200,000 157,000. 471,000

----------- -------------- ------------- ------------

Contribution margin 150,000 207,000 99,000 456,000

Less: Fixed cost

Fixed Advertising. 8,900. 40,300. 20,400 69,600

Depreciation of equipment 20,700 7,300 15,900 43,900

Salary of product line manager 40,900. 38,400 36,500 115,800

Allocated common fixed expenses 52,800 81,400 51,200. 185,400

----------- ------------- ---------- -------------

Total Fixed Expenses 123,300 167,400. 124,000 414,700

Net operating income(loss) 26,700 39,600 (25,000) 41,300

(1) From the income statement it is clear that racing bike cannot meet its fixed cost because it cannot provide contribution towards meeting its fixed cost

(2) it should be discontinued since it cannot provide a contribution towards meeting its fixed cost

(3) A Dirk bike has a profit of $26,700, A mountain bike has a profit of $39,600, A racing bike has a loss of ($25,000) Total profit for the product line is $41,300

7 0
3 years ago
PLEASE HELP!!!!
-BARSIC- [3]

Answer:

legal contract

Explanation:

should be it or currency

6 0
3 years ago
Read 2 more answers
why did wiesel write the book night how it connect with readers and who should read the book and why?
Thepotemich [5.8K]
He wrote it because he wanted to share his experience with the world and what he went through. All ages should he able to read books like this so they can learn from the history so they don't repeat the past because everyone needs to know about this even that killer many jews for just being Jews this book helps us have a better understanding of why everyone should be equal to each other.
6 0
3 years ago
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