When you buy in bulk, the price per individual item usually:

• A. increases compared to buying items individually
• B. decreases compared to buying items individually
• C. remains the same as buying items individually
• D. varies randomly with no relation to quantity purchased

Answer: (B)

Verified step by step guidance

1. Understand the concept of bulk buying: When consumers purchase items in larger quantities, sellers often provide a discount on the price per individual item to encourage larger purchases.
2. Recall the typical pricing strategy: Sellers reduce the price per unit as the quantity purchased increases, which is known as a quantity discount.
3. Analyze the options: The price per individual item usually does not increase with bulk buying, nor does it remain the same, and it is not random; it typically decreases.
4. Conclude that the price per individual item decreases compared to buying items individually because sellers incentivize bulk purchases by lowering the unit price.
5. Therefore, the correct understanding is that buying in bulk leads to a lower price per individual item.