Frito-Lay Recognizes That Its Tortilla Chip Products Are Partial Substitutes

Multiple Choice

Frito-Lay recognizes that its tortilla chip products are partial substitutes for one another. Its bean and cheese dips and salsa sauces complement its tortilla chips. Frito-Lay uses this knowledge to set prices for each item in order to ensure that the entire line is profitable. This pricing strategy is known as

A) bundle pricing.
B) price lining.
C) customary pricing.
D) product-line pricing.
E) loss-leader pricing.