The management of a rental building faces a rent control situation,where it cannot charge more than $400 a month in rent on the apartment.The management knows that the apartments are high in demand and renters would be willing to be $1000 per month for them.The management decides to only offer the furniture and apartment together for rent.This is an example of
A)Tying
B)Bundling
C)Exclusion
D)Fraud

Question

​The management of a rental building faces a rent control situation,where it cannot charge more than $400 a month in rent on the apartment.The management knows that the apartments are high in demand and renters would be willing to be $1000 per month for them.The management decides to only offer the furniture and apartment together for rent.This is an example of
A)​Tying
B)Bundling
C)Exclusion
D)​Fraud

Quizplus · Accepted Answer

Bundling is the practice of grouping two or more products or services together and selling them as a single package. In this scenario, the management is offering the apartment and furniture together as a package, which is an example of bundling. This allows them to charge more than the rent control limit as they are not just renting out the apartment but also the furniture. Tying refers to the practice of selling one product or service only if the customer buys another product or service as well. Exclusion and fraud do not apply to this scenario.

​The Management of a Rental Building Faces a Rent Control

The Management of a Rental Building Faces a Rent Control