Question

Effects on purchasing power of a customer due to discount wikipedia

Answer 1

Effects on purchasing power of a customer due to discount are as follows.

1. There might be high purchasing power or low purchasing power in relation to the necessity of the item whose cost is reduced by the business due to the discount.

2. Secondly, purchase power may increase due to the vanity of the item whose cost has been reduced due to the discount.

Answer 2

Purchasing power which is also called adjusted due to inflation, is often regarded as the number and quality of values and goods and also services that can be bought with a single currency unit.

For instance, if it goes down, then the purchasing power of a customer also goes down.

The purchasing power of a man decreases if the income remains the same but if the prices of goods and commodities go high up.