There are two limousine services that drive customers from communities in Winnipeg to the airport. Whenever one reduces its fare, its competitor reduces its fares by the same amount. This is an example of status quo pricing.

Question

Quizplus · Accepted Answer

This statement describes a situation where the pricing behavior of the two limousine services is dependent upon each other, with one service following the lead of the other. This is a characteristic of status quo pricing, which involves pricing at a level similar to competitors in the market. Therefore, the statement is true.

There Are Two Limousine Services That Drive Customers from Communities