In May 2020, 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

Kiki's sudden price increase, along with other shops lowering their prices simultaneously, suggests collusion and coordination among competitors to fix prices. This is an example of price fixing, which is illegal under antitrust laws.

In May 2020, Kiki's Nail Bar Opens on High Street