A pharmaceutical company faces a price regulation where it cannot charge any higher than $5,000 for a lifesaving drug. The company knows that the patients put a high value on this product and are willing to pay up to $10,000 for it. The company decides to sell the drug at $5,000 but requires the patients to purchase periodic blood testing from them for $5,000 . This is an example of
a. Tying
b. Bundling
c. Fraud, the company is not allowed to sell for any higher than the regulatory price
d. Both A&B
a
Economics
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Total utility is maximized when a consumer has spent all of his or her income and
A) spent equal amounts on all goods. B) marginal utility is maximized. C) the total utility per dollar from all goods is equal. D) the marginal utility per dollar from all goods is equal.
Economics
Eric lost his job because a recession caused his employer's sales to fall. This is an example of:
A. involuntary unemployment. B. frictional unemployment. C. structural unemployment. D. cyclical unemployment.
Economics