Question

read the passage, Three Trees Shampoo Company offers a free sample of hair conditioner with each purchase of a large bottle of shampoo. The company offers the sample to encourage more customers to purchase more large bottles of shampoo. Unfortunately, the company does not gain many new customers or sell as many bottles of shampoo as it hopes. As a result, the company decides to offer a smaller bottle of shampoo that costs less than the large bottle. then write a paragraph identifying an action the shampoo company takes that is an example of an incentive and an action it takes that is an example of a trade-off. Explain your reasoning.

Answer 1

The incentive in this question is the free sample that was offered to the customers when they purchase the large bottles. While the trade off is the  smaller bottles that were offered that costs less than the large bottles.

What is an incentive?

This is the term that is used to refer to the fact that a person is being offered something in order to carry out an action. The term incentive has to do with a payment or an inducement that could motivate a person. The free samples were offered to encourage people to buy more of the larger bottles.

What is a trade off?

This is the term that is used to refer to the point of balance. At this stage a sacrifice has to be made.

Read more on trade offs here:

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