Q.Distinguish between marked price and selling price, and explain why a discount reduces one to the other.

This is a short theory question on trade vocabulary; the key is that the marked price is the tagged price before discount, while the selling price is what the customer actually pays after discount.

This is a short-answer theory question on the types of price in trade.

Marked Price (MP). Also called the list or catalogue price, it is the price a shopkeeper displays on an article or its tag. It is usually set above the cost price and is the base on which any discount is calculated.

Selling Price (SP). This is the amount the customer actually pays — the marked price after any discount has been deducted.

How a discount links them. A discount is a reduction offered on the marked price to attract customers or clear stock. It carries the marked price down to the selling price:

where $d\%$ is the discount rate on the marked price. Thus the marked price is where a sale starts (the advertised price) and the selling price is where it ends (the price paid), the discount being the bridge between them. …

A frequent confusion is treating the marked price as the price paid. The customer pays the selling price, which is lower whenever a discount is g …