Answer:
the discount effect should be smaller for a change between 100 to 101, than for 1,000 to 1,001
Explanation:
The discount effect is basically how much do you need to lower your price (offer a discount) in order to sell one more unit. Generally, companies that sell larger amounts of units must offer larger discounts in order to sell additional units. That is why the discount effect should be larger if the total output is larger.
Based on the information given, the discount effect will be smaller for a change from 100 to 101 units than 1000 to 1001 units.
It should be noted that business mostly prefer to give discount when there's an increase in sales. In such a case, a higher quantity of products will command a higher discount then a lower quantity of product.
Therefire, the discount effect will be smaller for a change from 100 to 101 units than 1000 to 1001 units. The business will give a small discount for a small quantity of goods and vice versa.
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