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What is the following scenario an example of? A telephone company makes consumers buy landline phones in order to buy cell phones. A. price discrimination B. price fixing C. predatory pricing D. tying contracts

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H1storyBuff
The answer is D. A tying contract forces the buyer only on the condition that the buyer also purchases a different product from the same company. This ensures that the buyer gets what they want, but it could end up being twice the amount due to the unwanted item.
The scenario is an example of a tied contract or agreement. The phone company is tying the cell phones, and the customers are agreeing to purchase the tied landline in order to receive their cell phones.

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