Question

Two competing gas stations in a small town almost always have the same price for gasoline. If one gas station raises or lowers the price of a gallon of gas, the other station quickly follows suit. Which pricing objective does this illustrate

Answer 1

The correct option is (e). Maintaining status quo

Step-by-step explanation:

The status quo pricing refers the pricing where the similar level of prices are maintained that charged by the competitive firm to the customers. It is also known as the competitive pricing

As per the given scenario if one gas station increase or decrease its gallon prices the other station do the same

So this represents the maintaining status quo

hence, the correct option is (e) maintaining status quo