Vac N' Sew will give customers $100 for a used vacuum cleaner, regardless of condition, when they purchase a new vacuum or sewin

Question

Ivenika [448]

3 years ago

10

Vac N' Sew will give customers $100 for a used vacuum cleaner, regardless of condition, when they purchase a new vacuum or sewin

g machine. This essentially reduces the price by $100. What is this type of discount called?

Business

1 answer:

kondor19780726 [428] · Answer 1 · 2022-08-14T10:36:32+03:00

Answer:

Trade-in allowance

Explanation:

A trade-in allowance is a type of discount in which the price of a good is reduced by the value of a another good that the buyer gives to the seller.

In this question, we have a trade-in-allowance because buyers give a product (a used vacuum cleaner) valued at $100 in exchange for a discount by the same amount of the total price of the new vacuum that they want to buy.