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It is the end of the year and holiday sales are beginning. To remain competitive the manufacturers of ice scrapers for cars run a buy two get one free sale on Black Friday.
What effect will this have on the ice scraper market?

A. This decrease in price will increase the quantity demanded.
B. This decrease in price will increase demand.
C. This price change will decrease the quantity demanded.

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Answer:

The correct answer is (b)

Explanation:

Sale promotion is an effective way to improve short-term sales and at the same time attract new potential buyers.  Ice scrapers sale promotion strategy will help them to increase their sales revenue. As they are offering buy two get one free sale on black Friday the overall prices will decrease that will increase the demand.

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