A tie- in sale:
A)raises the price of a monopoly good and lowers the price of the tied- good.
B)lowers the price of the monopoly good and raises the price of the tied- good.
C)raises both the price of the monopoly good and the tied- good.
D)lowers both the price of the monopoly good and the tied- good.

Question

Quizplus · Accepted Answer

A tie-in sale involves offering a product or service that is only available with the purchase of another product or service. In this case, the monopoly good is the product that the company has a monopoly over, and the tied-good is the product that is being offered as part of the tie-in sale. The goal of a tie-in sale is to increase the sales of the tied-good by attaching it to the sale of the monopoly good. To achieve this, companies often lower the price of the monopoly good, making it more attractive for consumers to make the purchase. At the same time, they may raise the price of the tied-good, as they know that consumers are more likely to purchase it if it is less expensive than it would be otherwise. Therefore, option B is the correct answer as it lowers the price of the monopoly good and raises the price of the tied-good.

A Tie- in Sale