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 offer controlled rent but force the tenants to rent furniture from them.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 offer controlled rent but force the tenants to rent furniture from them.This is an example of
A)​Tying
B)Bundling
C)Exclusion
D)​Fraud

Quizplus · Accepted Answer

This is an example of tying, where the management is forcing the tenants to rent furniture along with the apartment, even though they would be willing to pay a higher rent without the furniture. The management is using their control over the rental apartment to tie it with the rental of furniture.

​The Management of a Rental Building Faces a Rent Control

The Management of a Rental Building Faces a Rent Control