Solid Surface,a countertop store,will give customers a 10 percent discount if they pay their bills in full in 20 days; however,after 20 days they do not receive a discount.This is an example of _______________.

Question

Quizplus · Accepted Answer

Sellers offer cash discounts to elicit quicker payment of invoices. The rational purchaser weighs the discount offered for early payment versus the value of keeping the money until it is due. Ideally the cash discount results in financial advantage for both parties.

Solid Surface,a Countertop Store,will Give Customers a 10 Percent Discount