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Commerce · Q131

eCommerce

Graduate and Post Graduate · Commerce · question 131

Q131

The per-product price consumers are willing to pay for a bundle ____________ as the number of goods in the bundle increases.

A.
decreases
B.
increases
Answer
C.
varies from product to product
D.
stays the same

Answer: Option B

Solution

Answer: Option B
Solution:
The per-product price consumers are willing to pay for a bundle increases as the number of goods in the bundle increases. The willingness of consumers to pay can, at times, be quite volatile. With bundle pricing, the seller lowers the variance on this willingness to pay and increases its profit by selling bundles of products instead of selling all products separately.