Question

Reducing the original price of an item is often called

Answer 1

Price reduction.

Explanation:

The act of reducing the selling price of products in order to attract costumers is called Price Reduction. This comprehends a marketing strategy.

Answer 2

Should be markdown, but if you have other options let me know and I'll tell you which it is.  But if markdown is one of your choices, or if this is fill-in, it's markdown.