Suppose a retail store was offering 10% off all prices on all goods. The incentive to take advantage of the 10% savings is:

Question

Quizplus · Accepted Answer

The incentive to take advantage of the 10% savings is directly related to the list price of the good. The higher the list price, the greater the incentive to save 10%, as the actual dollar amount saved will be greater. For example, if an item is listed at $100, the 10% discount would save the customer $10, whereas a $50 item would only result in a $5 savings. Therefore, the incentive is not unrelated, inversely related or independent of the list price.

Suppose a Retail Store Was Offering 10% Off All Prices