Two airline companies enter into a secret pact to simultaneously increase their fuel surcharges.As a result of the pact, fuel surcharges rose from $10 a ticket to more than $100 a fare.This is an example of:
A)price fixing.
B)price discrimination.
C)predatory pricing.
D)referral selling.
E)resale price maintenance.

Question

Quizplus · Accepted Answer

This is an example of price fixing, which is an illegal collusion between two or more companies to set prices at a certain level. In this case, the two airline companies agreed to simultaneously increase their fuel surcharges, resulting in a significant price increase for consumers.

Two Airline Companies Enter into a Secret Pact to Simultaneously