Cobbi has a utility function defined by: u(x₁,x2) = x₁¹/2x₂1/2. Then, we can find his "change in consumer surplus" due to a price change by computing "how much money you would have to give Cobbi after the price change to make him just as well off as he was before the price change." TRUE or FALSE

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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.