If four hair products companies agree to decrease the output of their styling products and raise the price of their styling products to $18, this is an example of _______.

Question

Quizplus · Accepted Answer

This scenario reflects price fixing, which is an agreement between competitors to set prices at a specific level rather than letting the market forces determine prices. By agreeing to decrease output and raise prices together, the companies are artificially inflating prices and limiting competition.

If Four Hair Products Companies Agree to Decrease the Output