Final answer:
A reduction in the price of a product or service is known as a sales discount. It is a pricing strategy that encourages purchase by lowering the sale price at the point of purchase. A rise in the supply of money in financial markets is what usually causes a decrease in interest rates. The option (A) is correct.
Step-by-step explanation:
A reduction in the listed price of a product or service is best represented by sales discounts. This is commonly used in pricing strategies to incentivize customers to make a purchase. Unlike sales returns or allowances, which are often employed after the sale transaction has been made due to an issue with the product or service, a sales discount is applied directly at the point of sale, effectively decreasing the purchasing price.
When it comes to influencing market interest rates, a rise in the supply of money typically leads to a decline in interest rates. Conversely, trade barriers like tariffs and subsidies affect industries by shifting supply curves and potentially leading to price changes in markets. Therefore, option (A) is correct.