When Jeremy bought gas, he noticed the convenience store offered him a 2 percent reduction in price if he paid cash rather than if he used his credit card to pay for his purchase. The convenience store was offering him a

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A cash discount is a reduction in price offered to a customer who pays with cash instead of credit. This is exactly what Jeremy was offered at the convenience store. A trade discount is a reduction in price offered to a reseller for buying in bulk or for being a preferred customer. A promotional allowance is a reimbursement from a manufacturer to a retailer for promoting their product. A rebate is a partial refund given to a customer after they have already paid the full price. A functional discount is a discount offered for paying early, or for making a recurring purchase. None of these other options match what Jeremy experienced.

When Jeremy Bought Gas, He Noticed the Convenience Store Offered