Which of the following is an example of a tying arrangement?
A) preventing a buyer from reselling a product outside a specific area
B) selling one product only if another product is purchased
C) forcing the purchase of all necessities from a single firm
D) prohibiting a seller from selling a competing item
E) selling different units of a good to the same buyer at different prices.

Question

Quizplus · Accepted Answer

Selling one product only if another product is purchased is an example of a tying arrangement. This is when a seller conditions the sale of a product (the "tying" product) on the buyer also purchasing a different product (the "tied" product). It is often used to leverage market power in one product to gain a competitive advantage in another product.

Which of the Following Is an Example of a Tying