You Were to Buy One Peach Tree and One Apple

question 354

Multiple Choice

you were to buy one peach tree and one apple tree from the Stark Bros.fruit trees and landscaping catalog in two separate orders,you would pay a total of $108.99.However,if you order the peach and apple tree together in the same order,you pay only $89.99.When purchasing the two trees together,what pricing strategy does Stark Bros.employ?

• A) product line pricing
• B) prestige pricing
• C) price lining
• D) discount pricing
• E) bundle pricing

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Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers at various prices.

Price Elasticity

The estimation of demand's reaction to the alteration of a good's price.

Midpoint Formula

A method used in geometry to find the midpoint of a line segment between two points by averaging the x and y coordinates.

Demand

The consumer's willingness and ability to purchase goods or services at various price points at a given time.