Question

Aaron calls you for advice on getting a good deal before Hannah buys furniture. What do you say?

a) Advise Hannah to negotiate the price and explore any ongoing promotions.
b) Suggest waiting for a holiday sale to get better discounts.
c) Encourage Hannah to apply for store financing for additional benefits.
d) Recommend checking other stores for similar items and comparing prices.

Answer 1

Aaron should advise Hannah to negotiate and look for promotions, wait for holiday sales for better discounts, and compare prices with other stores to ensure the best deal before buying furniture.

Step-by-step explanation:

When Aaron calls you for advice on getting a good deal before Hannah buys furniture, you have multiple options to consider. An economist might refer to getting a good deal as 'consumer surplus', which is the difference between what consumers are willing to pay for a good or service and what they actually pay. However, to advise Aaron and Hannah thoroughly, one could recommend:

• Negotiating the price and enquiring about ongoing promotions.
• Waiting for a holiday sale, when discounts are typically steeper.
• Comparing prices with other stores to ensure they are getting the best value for their money.

It's also useful to create a cost-benefit analysis, as suggested in the hypothetical chart, to decide whether the financial advantages of waiting for sales or promotions outweigh the benefit of immediate purchase.