Answer: See explanation
Step-by-step explanation:
Price leadership is when a leading firm that is in a particular industry has enough influence such that it can determine the price of the goods in the market. There are three main models of price leadership which are the barometric price leadership, collusive price leadership and the dominant price leadership.
Barometric price leadership is when the price leader acts as the barometer of the prevailing market conditions for the other firms that are in the industry. In such case, when a company sets the price of the products, the other companies do the same.
The dominant price leadership model occurs when a firm has the large amount of market share in the industry.