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    Tying Arrangement

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    A tying arrangement exists when
    a. a company sells two products that are substitutes for one another.
    b. a company requires that a customer tie itself down by signing a long-term purchasing agreement.
    c. a buyer is required to buy both a specific product and its complementary product from the same supplier.
    d. a company offers discounts to customers if they are willing to buy two different products.

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    Solution Summary

    The expert examines tying arrangements for substitutions. The requirements for customers are provided.