Gce Model Questions Vol1 2018 Commerce Question 19

Practice objective / multiple choice question 19 from the 2018 Gce Model Questions Vol1 Commerce examination.

Gce Model Questions Vol1 2018 Commerce Objective / Multiple Choice Hard Difficulty
Question 19 GCE_MODEL_QUESTIONS_VOL1 • 2018 • COMMERCE • objective

A retailer advertises a "Buy One Get One Half Price" (BOGOHP) offer on a product whose listed price is £120. The offer is said to apply to a single purchase per customer. A customer buys two units and pays £180 (full price for the first, half price for the second). The receipt, however, shows a mandatory environmental levy of £15 per unit, which was not mentioned in the advertisement, and a sales tax of 8 % applied to the subtotal after the levy. Determine the effective percentage discount the customer actually received relative to the advertised total price for two units (£240). Also, state whether the retailer's practice could be considered a breach of consumer‑protection regulations concerning misleading price information.

Answer Options

A. Effective discount 7.5%; retailer likely in breach of consumer‑protection regulations
B. Effective discount 5.5%; retailer likely not in breach of consumer‑protection regulations
Correct Answer C. Effective discount 5.5%; retailer likely in breach of consumer‑protection regulations
D. Effective discount 0%; retailer likely in breach of consumer‑protection regulations
Correct Answer
C
Correct Option:
Effective discount 5.5%; retailer likely in breach of consumer‑protection regulations

About This Question

This is Gce Model Questions Vol1 2018 Commerce Question 19. It is one of the objective questions from the 2018 Gce Model Questions Vol1 Commerce examination.

Difficulty level: Hard .

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