Accountancy, asked by alinakhan69, 11 months ago

effects on purchasing power of a customer due to discount methodology?

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Answered by Roshan1694
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Discount a product is a tool to fight inflation. The consumer will buy more items! If that continues for a while, the prices of products will increase because consumer will have more money. If the prices increases, cost of living decreases, and in the long run even if the wages increases the damage is done and it is hard to recover for that. Inflation is going to be rampant. And the producer is going to be discouraged to make more products

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