Case 4: A company sells two goods, A and B, each at $5. In…
Case 4: A company sells two goods, A and B, each at $5. In addition, they offer a bundle of the two goods together for $9.50. Four consumers have the following values of the two products: Consumer 1: $7.50 for A, $4.00 for B Consumer 2: $6.00 for A, $5.00 for B Consumer 3: $4.50 for A, $4.50 for B Consumer 4: $4.00 for A, $8.00 for B Q: Consider the relationship between the above values. If both products cost very little to produce, which of the following is the most likely way to increase profit?