Figure 11.5.1
-Refer to Figure 11.5.1 above. The points on the figure represent the reservation prices of four different consumers. With mixed bundling:
A) consumers A and D pay $90 for a single good, and consumers B and C pay $120 for a bundle.
B) consumers A and D pay $90 for a bundle, and consumers B and C pay $120 for a single good.
C) consumers A and D pay $90 for a bundle, and consumers B and C pay $120 for a bundle.
D) consumers A and D pay $90 for a single good, and consumers B and C pay $120 for a single good.

Question

Figure 11.5.1
-Refer to Figure 11.5.1 above. The points on the figure represent the reservation prices of four different consumers. With mixed bundling:
A) consumers A and D pay $90 for a single good, and consumers B and C pay $120 for a bundle. 
B) consumers A and D pay $90 for a bundle, and consumers B and C pay $120 for a single good. 
C) consumers A and D pay $90 for a bundle, and consumers B and C pay $120 for a bundle. 
D) consumers A and D pay $90 for a single good, and consumers B and C pay $120 for a single good.

Quizplus · Accepted Answer

Mixed bundling allows consumers to choose between purchasing items separately or as a bundle. Consumers A and D, with lower reservation prices, would likely opt for a single good at a lower price, while B and C, with higher reservation prices, might opt for a bundle at a higher price.

Figure 11.5.1 -Refer to Figure 11.5.1 Above. the Points on the Figure