cer surplus and consumer surplus, while total U.S. welfare decreased. Over the past two years, the prices of new cars and used cars showed sig h. The price increases in new and used cars were both caused by the dec y due to the semiconductor shortage. Charles dislikes Red Vines Licorice®. His indifference curves are positively or curves with positive vertical intercepts with Red Vines Licorice on the h nd other snacks on the vertical axis. CPI (Consumer Price Index) measures the cost for a fixed amount of prod me basket. One criticism is that it ignores the substitution effect and could

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Product and Price Bundling

Product and price bundling is used as a marketing strategy by businesses, where complementary products and services are combined and sold as a package deal. This bundled price is usually less than the total price of the individual products if they were to be sold separately. When bundled and sold, each product is sold at a reduced price. Using a price bundling strategy helps increase the average revenue per user and also increases the engagement with the user. This happens as the perceived value of the bundled products is more than the individual products.