When a company that produces computer printers prices them somewhat low,but the ink required to operate the printer is priced higher per relative usage,it is using
A)bait pricing.
B)a price leader.
C)penetration pricing.
D)price lining.
E)captive pricing.

Question

Quizplus · Accepted Answer

This is an example of captive pricing where the company sells their printers at a lower price, but increases the price of ink required to operate the printer. Consumers are "captivated" to continue purchasing the higher-priced ink because it is compatible only with the printer they own.

When a Company That Produces Computer Printers Prices Them Somewhat