Home Internet service is often sold with a free wireless modem if a customer signs a 12-month contract. This is best described as an example of intertemporal pricing.

Question

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Intertemporal pricing involves changing the price of a product or service over time to reflect changes in demand or cost. The example given is more accurately described as a sales promotion or incentive to encourage customers to commit to a service contract.

Home Internet Service Is Often Sold with a Free Wireless