In stores,it is common to find seasonal products marked down when the season ends.What explains this behavior?
A) The law of demand is being used to increase the quantity demanded.
B) The store is trying to increase its customers' demand for the product.
C) The store manager must be trying to drive away customers by selling low quality products.
D) The store is trying to increase its consumer's incomes by increasing their purchasing power.
E) The store is trying to sell the goods and realizes that they are substitutes for other goods whose prices have risen.

Question

Quizplus · Accepted Answer

The behavior of marking down seasonal products at the end of the season is a common application of the law of demand. As the season ends, the demand for the product decreases, and in order to sell the remaining quantities, the store must lower its price, thereby increasing the quantity demanded. This helps the store clear out seasonal inventory and make space for new products.

In Stores,it Is Common to Find Seasonal Products Marked Down