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Computer printer manufacturers often set a relatively low price for their printers, but the ink cartridges...

Computer printer manufacturers often set a relatively low price for their printers, but the ink cartridges are relatively high priced. Razor manufacturers may set a low price for the razor but a high price for replacement blades. Can you explain this pricing practice and/or provide additional examples?

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Answer #1

Answer - The seller is applyin the special tactic here for the related good. If the printer will be priced low , the demand will rise and hence he seller will here be able to earn more. Now ink is complementary to printer , and it had to be taken to make printer function. Hence people will be forced to take ink at higher prices. Hence then too , the seller will earn higher.

In the same way, seller raises the demand for razors by lowering the price and sells more at that price. After this , blades have to be definately taken as it is complemetary. Hence the seller charges them high to earn more there.

One more such example can be , the seller selling the refrigerator at the lower price , but selling the stabaliser required for smooth functioning of fridge. It is complementary to refrigerator. Hence they also opt the same pricing as described above.

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