trade association meetings with fake agents. Since few lysine alternatives, animal feed manufactures had an inelastic demand curve. Suite brought and Andreas argued price increased was not the result of market power but rather a reaction to increased cost of input and a labor strike.
Issue: Under Sherman Act are companies prohibited from conspiring to or agreeing to restrain trade? Inelastic Demand Curve: Large changes in price barely affect quantity demanded. Is treated as direct evidence of market power in an industry. Prohibition on Agreements: Includes agreements to match price of competitors.oCircumstantial Evidence: Can be inferred if (1) Few companies control an industry; and(2) These companies have a continuing adaptable agreement to fix prices and allocate market share.Court: Agreements artificially increased license prices and production maximums decreased production and further inflated prices. Holding: Under the Sherman Act, companies are prohibited from conspiring to or agreeing torestrain trade. These deals reduced output and allocated production shares to members.Outcome