Final answer:
Promotions and discounts incentivize immediate purchases by lowering prices or adding value, such as through a money-back guarantee, offering a good deal to consumers.
Step-by-step explanation:
​Promotions and discounts provide an incentive for consumers to purchase a good or service immediately. This can be achieved by either lowering the price of the product or by adding value to the purchase. For example, a seller might offer a money-back guarantee, which acts as a promise of quality and reduces the risk for the consumer, encouraging them to make a purchase. Economists would describe getting a 'good deal' on a product as consumer surplus, where the consumer is able to purchase a product for less than the maximum price they were initially willing to pay. Entrepreneurs and businesses that are successful in offering good deals not only reap monetary rewards but also introduce more competition into the market. This competition can lead to a greater selection of products and can often result in lower prices overall, which benefits consumers.