Question

Broker Joey announced to all of his sales and broker associates that for the next four weeks he and 3 other brokerages would advertise that all listings would be taken at 5% - a full 1% lower than what they normally charged. What is this plan an example of?

Answer 1

This plan is an example of "Price fixing"

Step-by-step explanation:

Price fixing consists of an agreement between respondents on the same side of the economy to only purchase or sell a product, service or product at such a fixed price, or keep price conditionals so that equilibrium control is kept at such a level.

This allows the suppliers to decide to give their goods a minimum or maximum price. Electronics retail organizations, for instance, may set prices together by setting prices or promotions on televisions.