Scenario 1: Suppose you are a salesperson is a high end clothing store known for its personal service. You receive a salary plus a commission equal to 10% of the sales/revenues that you sell. The manager of your store informs you that prices of the clothing in your store will increase by 10%. (1) Assuming everything else remains the same, would you be happy or sad about the price increase? Explain why or why not. Scenario 2: Suppose you are a salesperson at Macy’s, a department store. You receive a salary plus a commission equal to 10% of the sales/revenues that you sell. Macy’s informs you that price of the clothing in your store will increase by 10%. (2) Assuming everything else remains the same, would you be happy or sad about the price increase? Explain why or why not.
Scenario 1: Suppose you are a salesperson is a high end clothing store known for its personal service. You receive a salary plus a commission equal to 10% of the sales/revenues that you sell.
The manager of your store informs you that prices of the clothing in your store will increase by 10%.
(1) Assuming everything else remains the same, would you be happy or sad about the
Scenario 2: Suppose you are a salesperson at Macy’s, a department store. You receive a salary plus a commission equal to 10% of the sales/revenues that you sell.
Macy’s informs you that price of the clothing in your store will increase by 10%.
(2) Assuming everything else remains the same, would you be happy or sad about the price increase? Explain why or why not.
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