Elise Stanton, of North Central Novelties, reduces the price of games sold to Pride's Entertainment by 10% to allow for expenses associated with Pride's promoting the games to consumers. This is an example of a ____ discount.

Question

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This is an example of a trade discount, which is a discount offered to a particular trade channel member (in this case, Pride's Entertainment) as a reward for performing certain functions, such as promoting the product to consumers.

Elise Stanton, of North Central Novelties, Reduces the Price of Games