Question

Consumers who shop after-Christmas sales to stock-up on wrapping paper and bows at deep discounts are taking advantage of ________.

1) Clearance sales
2) Black Friday sales
3) Back-to-school sales
4) End-of-season sales

Answer 1

After-Christmas shoppers taking advantage of deep discounts on wrapping paper and bows are participating in clearance sales, leading to what economists call consumer surplus.

Step-by-step explanation:

Consumers who shop after-Christmas sales to stock-up on wrapping paper and bows at deep discounts are taking advantage of clearance sales. Clearance sales are common after major holidays when stores wish to clear out seasonal inventory and make room for new products. An economist might describe a shopper getting a "good deal" on a product during these sales as consumer surplus, where the consumer's willingness to pay is greater than the actual price paid, resulting in a perceived gain in value or utility.