Grouping two or more products together and pricing them as a unit is called:

• A. Two-part tariff
• B. Peak-load pricing
• C. First-degree price discrimination
• D. Bundling

Answer: (D)

Verified step by step guidance

1. Understand the concept of pricing strategies in microeconomics, which are methods firms use to set prices for their products or services.
2. Recognize that 'bundling' refers to the practice of grouping two or more products together and selling them as a single combined unit at one price.
3. Compare bundling with other pricing strategies: a two-part tariff involves a fixed fee plus a per-unit charge; peak-load pricing varies prices based on demand periods; first-degree price discrimination charges each consumer their maximum willingness to pay.
4. Identify that the key characteristic of bundling is the joint sale of multiple products, which differentiates it from the other options listed.
5. Conclude that the correct term for grouping products and pricing them as a unit is 'bundling'.