A university publishes a journal, which is subscribed to by individuals and bookshops.The editors have recommended $20 as the retail price.The university also maintains that the journal cannot be sold at a discount.The university has threatened to cease the supply to any bookshop that sells for less than the recommended retail price.This is an example of:
A)price fixing.
B)price discrimination.
C)predatory pricing.
D)referral selling.
E)resale price maintenance.

Question

Quizplus · Accepted Answer

The situation described is an example of resale price maintenance, which is a practice where a supplier sets a minimum price level for its product and threatens to cease supply to any distributor or retailer that does not comply with the set price level. In this case, the university is setting a retail price of $20 for its journal and threatening to stop selling to any bookshop that sells for less than that amount. This is an attempt to maintain the resale price of the journal across all distributors and ultimately increase profits for the university.

A University Publishes a Journal, Which Is Subscribed to by Individuals