Tennessee Real Estate Exam Practice Question
A small broker committee sets a single non-negotiable commission rate for every seller. This marketing plan is an example of
Correct Answer: B
Rationale: The scenario illustrates price-fixing, where a group of brokers establishes a fixed commission rate, eliminating competition and potentially harming sellers. This practice restricts market dynamics and can lead to higher costs for consumers.
Option A, "apostle," refers to a strong advocate or supporter and is unrelated to pricing strategies. Option C, "market allocation," involves dividing markets among competitors rather than setting prices, which is not the case here. Option D, "consumer protection," focuses on safeguarding consumer rights and interests, but does not pertain to the establishment of a fixed commission rate.
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