Table Product Quantity Price Milk Bread 30 50 2016 (Base Year) $2.0 decreased; 26.1% decreased; 4.1% 3.0 2017 2018 Price Price 2.2 3.5 2.5 4.0 Assume the consumption basket has two products- bread and milk-with prices and quantities shown in the above table. Refer to Table. Suppose your income increased by 10 percent from 2017 to 2018. After adjusting for inflation, your purchasing power effectively______________ by about from 2017 to 2018. Group of answer choices increased; 24% increased; 10%

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Q: None

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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.