If Polka Cola agrees to sell its cola to a retailer only if the retailer also buys a lemon-lime drink,Polka Up,then Polka Cola is engaged in
A) a tying arrangement.
B) a requirement contracts.
C) an exclusive deal.
D) territorial confinement.
E) price discrimination.

Question

Quizplus · Accepted Answer

A tying arrangement is when a seller requires a buyer to purchase one product in order to be able to purchase another product. In this case, Polka Cola is requiring the retailer to purchase Polka Up lemon-lime drink in order to be able to purchase Polka Cola.

If Polka Cola Agrees to Sell Its Cola to a Retailer