n NISM Certifications
XV NISM Series XV
Medium

Which situation gives buyers high bargaining power?

Practice question from NISM XV Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Limited production, many buyers

  2. Large production, few buyers

    Correct answer

  3. C

    Limited production, few buyers

  4. D

    Large production, many buyers

Why this is the answer

When there are many sellers but few buyers, buyers can exert pressure on suppliers to obtain better prices, discounts, or favorable terms.

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