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18 April, 04:04

Vac N' Sew will give customers $100 for a used vacuum cleaner, regardless of condition, when they purchase a new vacuum or sewing machine. This essentially reduces the price by $100. What is this type of discount called?

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  1. 18 April, 05:52
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    Trade-in allowance

    Explanation:

    A trade-in allowance is a type of discount in which the price of a good is reduced by the value of a another good that the buyer gives to the seller.

    In this question, we have a trade-in-allowance because buyers give a product (a used vacuum cleaner) valued at $100 in exchange for a discount by the same amount of the total price of the new vacuum that they want to buy.
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