If all three grocery stores in town decide to charge the same price for a loaf of bread, what type of pricing tactic is being used?
A)horizontal price fixing
B)vertical price fixing
C)horizontal price discrimination
D)vertical price discrimination
E)loss-leader pricing

Question

Quizplus · Accepted Answer

Horizontal price fixing occurs when competitors in the same market agree to set the same price for products or services. If all three grocery stores in town decide to charge the same price for a loaf of bread, it is an example of horizontal price fixing.

If All Three Grocery Stores in Town Decide to Charge