Essay
Derek is the co-owner of a small gift shop. His colleague, Ron wants the shop to hold a sale and reduce most prices by 10% to 20%. His parents owned a convenience store, and they said that they could always count on increased traffic when they cut prices. If a 10% price cut didn't bring enough purchases, then cut by 20%, and the cash flow would cover all their needs. Is Ron's suggestion economically viable? Why or why not?
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A price cut will always lead to some inc...View Answer
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Correct Answer:
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