Comparing the slope of the budget line (Opportunity Cost of Good Y) with the slope of the Indifference Curve (Marginal Rate of Substitution) for a given bundle allows comparison between the value of a good in consumption vs. the value of the good in exchange. If the Opportunity Cost is greater than the MRS, the bundle cannot be optimal. Good X 14 12 B C 10 BL₁ 16₂ Good Y

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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.