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Give the defintion & provide 2 examples for each.
1. Price fixing
Definition
The maintaining of prices at a certain level by agreement between competitors
Examples (provide 2)
- Two Airline companies team up to sell at the same price in order to maintain price margin.
2. Price discrimination
The action of selling the same product at different prices to different buyers in order to maximize sales and profits
- Movie theater prices to the elderly vs. children
3. Deceptive pricing
- the method by which retailers use deceptive means to trick the customers into thinking that they are paying a lower price for the product, than what they are actually supposed to.
4. Predatory pricing
- the pricing of goods or services at such a low level that other suppliers cannot compete and are forced to leave the market.
Examples
5. Fair trade and minimum markup laws
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