Play It Again Sam is a producer of high-end CD burners.It requires customers to purchase high-quality blank CDs from it in order to maintain warranty agreements.This is an example of a:
A) bundle.
B) two-part tariff.
C) tying contract.
D) transfer price.
E) joint product.

Question

Quizplus · Accepted Answer

This is an example of a tying contract, where the producer requires customers to purchase additional products (high-quality blank CDs) in order to maintain warranty agreements on the main product (high-end CD burners).

Play It Again Sam Is a Producer of High-End CD