Final answer:
A broker engaging in the practice where fear is induced in homeowners about minorities moving into the neighborhood to prompt sales at a loss, followed by selling at higher prices to minorities, is guilty of blockbusting.
Step-by-step explanation:
A broker that induces owners to list or sell on the basis the neighborhood is deteriorating due to minority influences is guilty of blockbusting. This unethical practice involves exploiting racial prejudices to instigate "white flight," where real estate agents alarm homeowners about minority families moving in, leading to panic selling at low prices. Agents would then resell these homes to minority families at inflated prices, profiting from the created disparity. Not only did this erode community trust and stigmatize minority groups, but it also reinforced residential segregation and was eventually outlawed by the Fair Housing Act of 1968.