Final answer:
Tying sales and bundling refers to the practice of selling two or more products or services together as a package for a single price. It offers benefits to both sellers and customers, but can be viewed as anticompetitive in some cases. Examples include cable companies bundling services and computer software manufacturers bundling programs.
Step-by-step explanation:
Tying sales and bundling refers to the practice of selling two or more products or services together as a package for a single price. This allows the customers to acquire multiple products or services at a better price compared to purchasing them separately. For example, cable companies often bundle cable, internet, and phone services together at a discounted price.
Bundling provides benefits to both sellers and customers. Sellers can increase their sales by offering attractive package deals, while customers can enjoy cost savings and convenience. However, tying sales and bundling can be seen as anticompetitive in some cases, but in others, they are legal and common.
One common example of bundling is when computer software manufacturers include multiple programs in a new computer purchase, even if the buyer only wants a few of the programs.