Question

NEWS WIRE PRICE FIXING German Brewers Fined ver Price-Fixing BERLIN (AP) - German antitrust authorities have fined a group of beer brewers a total of 106.5 million euros ($145 million) for illegal price-fixing between 2006 and 2008. The Federal Cartel Office said Monday that the companies fixed price increases for draft and bottled beer. Five firms were fined Bitburger, Krombacher, Veltins, Warsteiner and Barre- along with seven people deemed to be "personally responsible." Cartel office chief Andreas Mundt said the breweries involved, some of Germany's most prominent, agreed to raise draft beer prices in 2006 and again in 2008 by between 5 and 7 euros ($6.8-$9.5) per 100 liters (26.4 gallons). In 2008, they agreed to hike the price of a 20-bottle case of beer by 1 euro. Mundt said in a statement that the price-fixing was based "largely on purely personal and telephone contacts." Source: Associated Press, January 13, 2014. increase per bottle of beer If a euro is worth $1.20, by how much did the price-fixing scheme by German brewers increase the price of a bottle of beer in 2008?

Answer 1

Solution: TOtal beer bewerl= [o6.5million euro g L$145 million) Per loo liters, Pnicesaise in ao06 and 2008 are between 5andeurs C26-49a long) and n o08 hikeofthe proce of aobottle caj heex= leuro I Euo woth g1.ao, the picetixing Seheme by German inarcal the price ofa bottle of beer brewers in Ro08 Caloolation: akwera agreed to ghen news eport German pCanding leuro oTaise the price of ao botle Caje of bees by NOw thcreage in fnce of l botte. of beer: Uncreale in pice of Sobottle Case Per bottle incrcole in price Noof bottles in Cole

= lExo 0 OSeuro Thus, German breawey hal incrcale the price oL 1 botle of bear by Given (euo = 8). ao Zcheme has Thus the Gexman brewers pmice fixing beor by (go-o6 increated the pmce of bottle