The argument that consumers will not be willing to pay any more for two items sold together as they would for the two items sold separately is used to justify the legality of which of the following
A)resale price maintenance
B)tying
C)predatory pricing
D)free-riding

Question

Quizplus · Accepted Answer

The argument that consumers will not be willing to pay any more for two items sold together as they would for the two items sold separately is used to justify the legality of tying. Tying is a business practice in which a company sells one product or service as a mandatory addition to another product or service. The argument suggests that tying does not harm consumer welfare since consumers are not willing to pay more for the two goods sold together than they would for each good sold separately.

The Argument That Consumers Will Not Be Willing to Pay