With tying:
A)the firm tries to price each unit at the consumer's reservation price.
B)the firm offers consumers a quantity discount.
C)the firm charges different consumer groups or market segments a different price.
D)a buyer can only purchase one product by agreeing to purchase some other product as well.

Question

Quizplus · Accepted Answer

Tying occurs when a buyer is required to purchase one product in order to be able to purchase another product. This strategy can be used to bundle less popular products with more popular products or to increase overall profits by forcing consumers to purchase additional items they may not have initially intended to buy. Tying occurs when a buyer can only purchase one product by agreeing to purchase some other product as well. This allows the firm to effectively set prices for both products and increase revenue. Options A, B, and C are pricing strategies that do not involve tying.

With Tying