Answer:
B. Trade.
Explanation:
A trade discount can be defined as a reduction in the price of goods given by a manufacturer to a wholesaler or retailer when they buy units of goods in larger quantities. This ultimately implies that, a trade discount is a percentage reduction in price given by a manufacturer to a wholesaler or retailer in order to encourage them to buy the goods in larger quantities and thus, increase revenue and profits.
For trade discounts, reductions off the list price are offered to resellers in the marketing channel on the basis of where they are in the channel (wholesaler or retailer) and the marketing activities they are expected to perform in the future.
Answer:
a. a rightward shift of the demand curve for margarine
Explanation:
If the price of butter increases, consumers would demand less of butter and more of margarine. This would shift the demand curve of margarine to the right and the demand curve of butter to the left.
A substitute good is a good which can be used in place of another good. Substitute goods usually have a more elastic demand because if the price of the good increases, it can be easily substituted with another good.
The phenomenon exhibited by butter and margarine is known as cross price elasticity. It when the change in price of one good leads to a change in the quantity demanded of another good.
Answer:
<u>EQUITY AND LIABILITIES</u>
<u>EQUITY</u>
Retained earnings $ 41,563
Preferred stock $ 8,485
Common stock - Issued $ 8,743
Treasury stock $ 2,450
Share Premium $ 52,878
Total Equity $114,119
Explanation:
The the stockholders’ equity section of the balance sheet shows the amount of capital invested by the shareholders in the business as well as the reserves that have been allocated to them.
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Answer:
The correct answer is A) inconsistent reasoning; saving $20 is saving $20.
Explanation:
Tony is making an uninformed decision or more strictly, his reasoning is inconsistent. A flat discount of $20 is applicable to all products. Whether he buys something that is worth $50 or $500, his savings would still be the same.
All other options are wrong. If e.g. he this was a flat 20% discount, his savings would have been much different. e.g. 20% of $50 is $10 while it equals to a $100 for a $500 product.
At this point, he would have to make rational decision on what he really needs to buy.
