A retailer decides to reduce the price of a sport coat that normally costs $98. The
reduction in price is $3. The storeowner believes that the reduction will catch the eye of
the value shopper. If the sport coat does not sell, the retailer might wish to consider
which of the following before making another price change?
A) subliminal perception
B) the figure-ground principle
C) the golden triangle
D) Weber’s law
Sixteen-year-old Michael wanted a car. One evening while his father was paying bills,
Michael looked over his father’s shoulder and saw how much money had been placed in
the checking account. He whistled and said, “I thought you said that you didn’t have
enough money to buy me a used car. In just one month, you could buy me the car I
want.” Michael’s father then gave him a lecture on the differences between income and
what is left after money is spent on utilities, mortgages, insurance premiums, and food.
“Total income,” his father said, “is not the same as ________ income, the source from
which your unnecessary car would have to come.”
A) wealth
B) managed
C) perpetual
D) discretionary