Individuals Can Choose to Purchase Microsoft Stand-Alone Software Packages,such as the Home

question 99

Multiple Choice

Individuals can choose to purchase Microsoft stand-alone software packages,such as the Home and Student versions of Word,Excel,and PowerPoint,for $119.99 each.However,they may choose to purchase the Office Home and Student 2010 suite,which has all of these applications in the same package,for a price of $149.99.Microsoft is using a __________ pricing strategy.

• A) penetration
• B) prestige
• C) bundle
• D) odd-even
• E) standard mark-up

---

Definitions:

Income

Earnings received through work, investments, or government benefits, among other sources.

Permanent Income Hypothesis

A theory suggesting that an individual's consumption at any given time is determined not just by current income but also by their longer-term income expectations.

Consumption

The action of using goods or services for personal use, satisfaction, or to fulfill needs.

Expected Income Stream

The anticipated series of payments received over time, often from investments, employment, or other sources of income.