Multiple choice

A buyer's market exists when

  1. a buyer faces a glut of products to choose from

  2. a buyer faces scarcity of products to choose from

  3. a number of producers co-exist and sell the product at a mutually agreed price

  4. none of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A buyer's market occurs when supply exceeds demand, giving purchasers an abundance of options and bargaining power to negotiate lower prices. Conversely, a seller's market exists when demand exceeds supply and products are scarce.

Keep practicing — related questions