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Under what conditions does a buyer have the most supply
management leverage over a seller?

1 Answer

3 votes

Final answer:

Buyers have the most supply management leverage over a seller when there is competition, high demand, and access to information.

Step-by-step explanation:

In order for a buyer to have the most supply management leverage over a seller, there are several conditions that must be met:

  • Competition: The presence of multiple sellers in the market increases supply and gives buyers more options to choose from, which in turn gives them more bargaining power.
  • High demand: When there is a high demand for a product but limited supply, buyers have more leverage as sellers will be motivated to meet the demand and adjust their prices accordingly.
  • Access to information: Buyers must be well-informed about the product's price, quality, and availability. This allows them to make informed decisions and negotiate better deals.

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