In stores,it is common to find seasonal products marked down when the season ends.What explains this behavior?
A) The law of demand is being used to increase the quantity demanded.
B) The store is trying to increase its customers' demand for the product.
C) The store manager must be trying to drive away customers by selling low quality products.
D) The store is trying to increase its customers' incomes by increasing their purchasing power.
E) The store is trying to sell the goods and realizes that they are substitutes for other goods whose prices have risen.

Question

Quizplus · Accepted Answer

The behavior can be explained by the law of demand, which states that as the price of a good decreases, the quantity demanded will increase. Therefore, the store is lowering the price of seasonal products to increase the quantity demanded and sell off inventory before the season ends, preventing any future losses.

In Stores,it Is Common to Find Seasonal Products Marked Down