At the supermarket, Matilda notices two similar brands of laundry detergent, each with different sizes and prices namely Brand A, 2.5 litres at $7.62; Brand B, 1.5 litres $5.70. Matilda, who has never been good at mental arithmetic, cannot figure out which brand is the better buy. However, Matilda also notices that the retailer has displayed additional information as follows: Brand A $3.05 per litre and Brand B $3.83 per litre. This type of price display is known as:

Question

Quizplus · Accepted Answer

The type of price display used in this scenario is called unit pricing. Unit pricing is a method of pricing goods based on their unit of measurement, such as price per liter or price per ounce, so that consumers can easily compare prices and make informed purchasing decisions. In this case, Matilda can easily see that Brand A is the better buy because it has a lower price per liter ($3.05) than Brand B ($3.83).

At the Supermarket, Matilda Notices Two Similar Brands of Laundry