[Adult Floaters] Adam and Zach Are Both Involved in Businesses

Multiple Choice

[Adult Floaters] Adam and Zach are both involved in businesses that manufacture bathing suits with small personal flotation devices implanted to assist with swimming. They both ship the suits to different states around the country. Adam and Zach get together and decide to raise their prices. They decide that since they are the only two manufacturers of this type of suit, if they both stick together and raise prices to an agreed upon amount, then consumers will be forced to pay that amount. They want to make a lot of money before anyone else jumps into the market. Adam's disgruntled secretary finds out about the agreement and sends out letters to consumers revealing the agreement.
-Have Adam and Zach violated the Sherman Act?

A) Yes, they violated Section 1.
B) Yes, they violated Section 2.
C) No, there is no violation because they are not engaged in intrastate commerce.
D) No, there is no violation because they have not established a monopoly.
E) No, there is no violation because at least three businesses must be involved in order to establish a violation of the Sherman Act.