Question

You have two coupons, one is for $25 off and the other is for 25% off. When would you use the $25 off coupon? When would you use the 25% off coupon? When would it not matter which coupon you use?

Answer 1

Answer:

If I had two coupons, one for $ 25 off and the other for 25% off, to determine when I would use the $ 25 off coupon and when I would use the 25% off coupon, and when it would not matter which coupon I would use, I must carry out the following reasoning:

The $ 25 off coupon is a flat coupon, that is, it does not adapt to the price of the thing to be paid, but rather maintains its value constantly. Therefore, its utilization will be higher if those $ 25 represent a high value compared to the initial price of the product: if the thing is worth $ 50, a $ 25 off coupon represents half its value, while if the thing is worth $ 500, that same coupon will only represent 5% of it. Therefore, I would use the coupon for things that are worth between $ 25 and $ 99.

Instead, the 25% off coupon is a variable coupon, which is adapted according to the value of the product. In other words, a discount will always be made for 25% of said value: if the product is worth $ 80, the discount will be $ 20 (80 x 0.25), while if the product is worth $ 1,000, the discount will be $ 250 (1000 x 0.25 ). Therefore, I would use the coupon for products with a price greater than $ 100, that is, from $ 101 and up.

Finally, since 25% of $ 100 is $ 25, if you buy something of that value, it would be indistinct to use either of the two coupons.