What is the term for the amount by which a price is decreased?

The term that refers to the amount by which a price is decreased is a discount. A discount is typically expressed as a percentage of the original price or as a specific dollar amount subtracted from the total price. It is commonly used in sales and promotions to encourage customers to make a purchase by offering a lower price than the standard retail price.

In contrast, markup refers to the amount added to the cost price of goods to cover overhead and profit. Profit is the financial gain obtained when the revenue from sales exceeds the costs associated with selling the product. Commission is a fee paid to an agent or salesperson based on the sales they make, typically expressed as a percentage of the sales amount. Understanding these definitions helps clarify the distinct terms used in pricing and sales strategies.