Gas, Inc., and Oil Corporation refine and sell gasoline. To limit the supply of gas on the market and thereby raise prices, Gas and Oil agree to buy "excess" supplies from dealers and "dispose" of it. This is

Question

Gas, Inc., and Oil Corporation refine and sell gasoline. To limit the supply of gas on the market and thereby raise prices, Gas and Oil agree to buy "excess" supplies from dealers and "dispose" of it. This is​

Quizplus · Accepted Answer

This scenario describes a per se violation of the Sherman Act, which prohibits agreements between competitors to limit the supply of a product on the market. The agreement between Gas and Oil to buy up excess supplies and dispose of them is a clear example of price fixing, which harms competition and leads to artificially inflated prices for consumers.

Gas, Inc, and Oil Corporation Refine and Sell Gasoline