The following questions highlight how changes in numbers can be measured in both absolute and relative, or percentage, terms.Two stores in a mall are having promotions. The first, Annie's Attic, is offering $15.00 off any purchase. The other, Betty's Breakables, is offering 40% off any purchase. Each store offers a music box at a (non-discounted) price of $90 and a faux Ming vase for $75.00, as summarized in the following table. Determine the promotional price of each item at each store.Original PriceDiscount(Dollars)$15.00 Off40% OffItem(Dollars)(Dollars)A music box$90$75.00$54.00A faux Ming vase$75.00$60.00$45.00Suppose a friend of yours wants to buy a crystal candlestick. You remember seeing this item at both Annie's Attic and Betty's Breakables, but you donot remember the price.What advice should you give your friend in this situation?Go to Betty's Breakables, if the price is below $37.50.Go to Annie's Attic, if the price is above $37.50Go to Annie's Attic, $15.00 off is always better than 40% off.Go to Betty's Breakables, 40% off is always better than $15.00 off.Go to Betty's Breakables, if the price is above $37.50.

Brands use promotional evaluation to draw in prospects and customers by quickly lowering the value…

Answered: Determine the promotional price of each…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The following questions highlight how changes in numbers can be measured in both absolute and relative, or percentage, terms.

Two stores in a mall are having promotions. The first, Annie's Attic, is offering $15.00 off any purchase. The other, Betty's Breakables, is offering 40% off any purchase.

Each store offers a music box at a (non-discounted) price of $90 and a faux Ming vase for $75.00, as summarized in the following table.

Determine the promotional price of each item at each store.
Original Price
Discount
(Dollars)
$15.00 Off
40% Off
Item
(Dollars)
(Dollars)
A music box
$90
$75.00
$54.00
A faux Ming vase
$75.00
$60.00
$45.00
Suppose a friend of yours wants to buy a crystal candlestick. You remember seeing this item at both Annie's Attic and Betty's Breakables, but you do
not remember the price.
What advice should you give your friend in this situation?
Go to Betty's Breakables, if the price is below $37.50.
Go to Annie's Attic, if the price is above $37.50
Go to Annie's Attic, $15.00 off is always better than 40% off.
Go to Betty's Breakables, 40% off is always better than $15.00 off.
Go to Betty's Breakables, if the price is above $37.50.

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