When One Gas Station Lowers Its Price a Penny, the Station

Multiple Choice

When one gas station lowers its price a penny, the station on the other corner of the intersection lowers its price, followed by the gas stations on the next block, and so on, until nearly every gas station in town has lowered its prices. This situation illustrates ________.

A) intense rivalry among competitors
B) a differentiation strategy
C) the treat of substitutes
D) a cost leadership strategy