myth 96

'A discount is a subsidy' Believe whatever you like and how you like it to be. That is the formula to be happy or to be conned happily. Is subsidy a discount or is discount a subsidy? Very simple, it depends on what you want to believe, or your definitions, or who says it. According to a forummer Cheong Chee Mun in the Straits Times today, his definitions of discount and subsidy go like this: Discount - A discount is the difference between the market price and seller's price. eg. If the market price of a product is $200k and the seller sells it at $150k, he is giving a discount of $50k. Subsidy - A subsidy is the difference between the cost of a product or service and the reduced priced at which the product or service is sold or provided. Now these are not too difficult to understand right? I believe any layperson would be able to understand these two simple definitions easily. But Singaporeans still believe that a discount is a subsidy...I think....