Hewlett Packard's pricing scheme is to sell printers at relatively low price and ink cartridges at relatively high price. This practice is known as:
A) leverage.
B) predation.
C) retail maintenance.
D) tying.

Question

Quizplus · Accepted Answer

The practice of selling printers at a relatively low price and ink cartridges at a relatively high price is known as tying. Tying is a pricing strategy where a company sells a primary product or service along with a related product or service that is necessary to use the primary product or service. In this case, the printer is the primary product, and the ink cartridge is the related product. The company uses this strategy to generate more revenue from the sale of ink cartridges after selling the printer at a lower price.

Hewlett Packard's Pricing Scheme Is to Sell Printers at Relatively