Antonio owns a small menswear store located in downtown Winnipeg.He decides to have a "$10 Off Sale" on every item in his store.When he totals his sales results for the week,he finds that there was the greatest response to items under $50,and the least response to items over $50.This is a demonstration of:

Question

Quizplus · Accepted Answer

This is an example of Weber's Law, which states that the change threshold for a stimulus is proportional to the initial intensity of that stimulus. In other words, a $10 discount has a greater impact on items under $50, which are generally lower-priced, than on items over $50, which are higher-priced. This is because the perceived value of a $10 discount is greater for lower-priced items than for higher-priced items.

Antonio Owns a Small Menswear Store Located in Downtown Winnipeg