A cartel is a group of suppliers who act together in order to:
A) increase demand, raise prices, and increase profits.
B) increase supply, reduce prices, and increase profits.
C) increase demand, reduce prices, and increase profits.
D) reduce supply, increase prices, and increase profits.

Question

Quizplus · Accepted Answer

A cartel is a group of suppliers who collaborate to restrict the supply of a product in order to raise prices and increase profits. This means that they reduce supply, increase prices, and benefit from the resulting higher profits. Therefore, choice D is the correct answer.

A Cartel Is a Group of Suppliers Who Act Together