What might happen if a car dealership
is awarded a bonus by the manufacturer
for selling a certain number of its cars
monthly, but the dealership is just short of
that quota near the end of the month?
a. It may sell the remaining cars at huge
discounts to hit the quota.
b. It creates an incentive to sell cars from
c. It would ruin the relationship between
the dealer and the manufacturer.
d. Potential buyers will lose buying
power at the dealer.
Why might a supermarket advertise low
prices on certain high-profile items and sell
them at a loss?
a. It is a way for companies to be
b. The store will sell other groceries
to the same customers, often at a
c. It would not.
d. This reduces the incentives of trade.