If Big Pools Charges an Annual Membership Fee of $500

question 42

Multiple Choice

If Big Pools charges an annual membership fee of $500 per person for the use of their pool and charges a $4 fee each time a member uses the pool, this is an example of _______.

• A)an all- or- nothing offer
• B)two- part pricing
• C)commodity bundling
• D)a single pricing scheme

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Definitions:

Budget Constraint

The limits on the consumption bundles that a consumer can afford, based on their income and the prices of goods and services.

DVD

a digital storage format used to store high-quality video, audio, and data.

CD

Short for Compact Disc, a digital optical disc data storage format used for storing digital audio, video, and data.

Budget Constraint

The limit on the consumption bundles that a consumer can afford given current prices and their income.