Which situation illustrates price fixing?

Price fixing occurs when businesses, in this case brokerages, agree to set prices at a certain level rather than allowing competition to dictate those prices. When two brokerages set a standard commission rate, they are essentially colluding to eliminate competition by agreeing not to compete on price. This anti-competitive behavior can lead to higher costs for consumers, as it prevents the natural market forces from functioning.

In contrast, situations where brokerages compete for clients, advertise lower commissions, or have varying commission rates based on property type illustrate healthy competition in the marketplace. These practices encourage lower prices and more choices for consumers, ultimately benefiting the market overall. Thus, option A accurately highlights a scenario of price fixing through collusion among brokerages.