A price reduction to a buyer who buys in large volume is________

A price reduction to a buyer who buys in large volume is called a Quantity Discount. This is a common pricing strategy used by businesses to incentivize customers to buy larger quantities of their products. The discount is usually given as a percentage off the total purchase price, and the percentage discount may vary depending on the volume of the purchase. For example, a business may offer a 5% discount for purchases of 100 units or more, and a 10% discount for purchases of 200 units or more. This type of discount benefits both the buyer and the seller. The buyer can purchase products at a lower price per unit, and the seller can increase sales volume and potentially reduce their inventory costs. Quantity discounts are commonly used in industries such as manufacturing, wholesale, and retail, where large volume purchases are typical. It is important to note that quantity discounts are different from trade discounts, which are discounts offered to resellers or intermediaries in the distribution channel.