What is one of the potential consequences of collusion among real estate competitors?

What is one of the potential consequences of collusion among real estate competitors?

• A. Increased property values
• B. Fair competition
• C. Market manipulation
• D. Improved service quality

Answer: (C)

Collusion among real estate competitors leads to market manipulation, which can distort the natural dynamics of supply and demand. When competitors conspire to fix prices, limit supply, or engage in other anti-competitive behaviors, they undermine the principles of a free market. As a result, buyers may have fewer choices and might end up paying inflated prices for properties that do not reflect true market value. This manipulation can lead to an unfair advantage for the colluding parties, resulting in long-term negative impacts on consumers and the overall market health. The other options, such as increased property values, fair competition, or improved service quality, reflect outcomes that are contrary to the effects of collusion. In fact, collusion typically results in decreased competition and potential harm to consumers.

Collusion among real estate competitors leads to market manipulation, which can distort the natural dynamics of supply and demand. When competitors conspire to fix prices, limit supply, or engage in other anti-competitive behaviors, they undermine the principles of a free market. As a result, buyers may have fewer choices and might end up paying inflated prices for properties that do not reflect true market value. This manipulation can lead to an unfair advantage for the colluding parties, resulting in long-term negative impacts on consumers and the overall market health. The other options, such as increased property values, fair competition, or improved service quality, reflect outcomes that are contrary to the effects of collusion. In fact, collusion typically results in decreased competition and potential harm to consumers.