In May 2009, Kiki's Nail Bar opens on High Street.Her shop is an instant hit because Kiki offers manicures for $5 a session, significantly cheaper than her competitors on that street whose manicures are $50 a session.In 2010, after a secret meeting with some other shop owners, Kiki suddenly raises her prices to $30 a session, and other shops simultaneously lower their prices to $30 a session.This is most likely an example of:

Question

Quizplus · Accepted Answer

Price fixing occurs when businesses agree on prices of goods or services, rather than letting competition in the market determine them. Kiki and other shop owners meeting and setting the same price is an example of price fixing.

In May 2009, Kiki's Nail Bar Opens on High Street