Question

Provide a key example of what groceries do to move items which are noting to approach there expiration dates? What are some tricks used by other types of merchants to move product? What is the marketing ploy being used to trick consumers to think they are getting better deals?

***New answer needed***

Answer 1

Answer - Groceries are such items as vegetables etc. which are perishable in nature. The grocery sellers have limited time to sell them before they perish and sellers have to face loss.

For example - A seller of tomatoes will try to sell of his whole stock by the end of the day so that they do not get perished on the way back or the other day.

This is common tactic used. The grocery sellers lower the rates of the grocery which are approaching their expiry date. They do this because they know people will purchase more at lower price and the stock will be cleared before the expiry and will not face any loss . The demand curve being downward also shoes that more is demanded at lower price. Hence to clear up the stock , the price is lowered and grocery is sold away.