When Paulette first saw the dress in the store window,she knew two things.She had to own the dress,and she could not afford it at its current price.Disappointed,she left.Two weeks later,she passed by the store again and saw that the price of the dress had been reduced to one that she could afford.Specifically,the store had reduced the price by 30 percent to "move" it.Paulette was able to purchase the dress because of a(n)
A) negative markup.
B) markup elimination.
C) markdown.
D) liquidity reduction.
E) increase in net margin.

Question

When Paulette first saw the dress in the store window,she knew two things.She had to own the dress,and she could not afford it at its current price.Disappointed,she left.Two weeks later,she passed by the store again and saw that the price of the dress had been reduced to one that she could afford.Specifically,the store had reduced the price by 30 percent to "move" it.Paulette was able to purchase the dress because of a(n)
A) negative markup.
B) markup elimination.
C) markdown.
D) liquidity reduction.
E) increase in net margin.

Quizplus · Accepted Answer

A markdown is a reduction in a retail price that is necessary if the items does not sell at the full selling price.

When Paulette First Saw the Dress in the Store Window,she