Alabama Post-License Salesperson Practice Exam

Price fixing in the context of real estate refers to an illegal agreement among competitors to set prices at a certain level, rather than allowing competition to establish those prices. This practice is considered anti-competitive and harmful to consumers because it undermines the forces of supply and demand. When competitors collude to fix prices, they restrict market competition, which can lead to higher prices for services and diminished choices for consumers. Such actions violate antitrust laws, which are designed to promote competition and protect consumers.

The other choices do not reflect the concept of price fixing accurately. Legal agreements to offer discounts support competition and are permitted within the regulatory framework. Encouraging the purchase of additional services is a common business strategy and is not inherently illegal. Concurrent offers on properties by investors pertain to market dynamics and competition but do not imply any collusion regarding price setting. Thus, the correct choice focuses on the illegal nature of colluding to manipulate pricing in the market.