A local restaurant sells strawberry pie for $3.00 per slice. However, if you order the prime rib dinner, you can get a slice of pie for only a dollar. This is an example of:
A) bundling.
B) second-degree price discrimination.
C) a two-part tariff.
D) tying.
E) none of the above

Question

Quizplus · Accepted Answer

Bundling is when a seller offers two or more products together for a lower price than if they were sold separately. In this case, the restaurant is offering a slice of pie for $1 if you order the prime rib dinner. This is an example of bundling because the restaurant is offering two products together for a lower price than if they were sold separately.

A Local Restaurant Sells Strawberry Pie for $3