Which of the following describes bundling as a form of price discrimination?
A)Customers with similar demographic characteristics are grouped together.
B)Customers with similar preferences are put in groups, each with a set price.
C)Different products are sold together at a cheaper total price than if sold separately.
D)A product is sold at a lower per-unit price if several units are bought together.

Question

Quizplus · Accepted Answer

Bundling involves selling different products together at a lower total price than if they were sold separately. This allows the seller to charge a different (lower) price to customers who are willing to buy multiple products at once, which is a form of price discrimination. By offering a lower price for bundled items, the seller can attract customers who value convenience or who are more price-sensitive, while still earning revenue from customers who are willing to pay more for individual items.

Which of the Following Describes Bundling as a Form of Price