Why would anyone in their right mind buy a brand new car in the spring when they know that new car models will appear in late summer and early fall and the dealers will use? A) markdowns to move that old inventory
B) information systems to move that old inventory
C) pull systems to move that old inventory
D) lost sales to move that old inventory

A) markdowns to move that old inventory

Explanation:

An inventory is an accounting term used to describe a list of finished goods, goods still in the production line and raw materials that would be used for the manufacturing of more goods in a bid to meet the unending consumer demands.

When new car models appear in late summer and early fall, the dealers will use markdowns to move the old inventory.

A markdown price can be defined as the reduction in the original selling price of a good or service, in order to increase the level of sales. Also, it's used to describe a fall in the value of an asset.

Basically, a markdown is commonly used by businesses to stimulate the demand for their goods and services at a reduced price.

On the other hand, a mark-up price is simply the difference between the cost price of a good (product) or service and its selling price.

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