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When Two or More Organizations Conspire to Set Prices Above

question 6

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When two or more organizations conspire to set prices above a competitive price, they are engaging in:


Definitions:

Demand Curve

A graphical representation in economics showing the relationship between the price of a specific good and the amount of it that consumers are willing and able to purchase at various prices.

Supply Curve

The supply curve graphically represents the relationship between the price of a good and the quantity supplied by producers over a specific time period.

Market

A system or place where parties engage in exchange of goods, services, or information, characterized by supply and demand.

Positive Externality

A benefit that is enjoyed by a third-party as a result of an economic transaction in which they had no direct involvement.

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