A market where buyers have the advantage due to surplus of goods and lower prices.

A market where buyers have the advantage due to surplus of goods and lower prices.

• A. Non-price Competition
• B. Sellers Market
• C. Buyers Market
• D. Price Competition

Answer: (C)

This item is testing how market conditions shift power between buyers and sellers. When there is a surplus of goods relative to buyers, purchasers have more leverage because sellers must compete to attract buyers. That creates a buyers’ market, with lower prices and more options for buyers. The description “surplus of goods and lower prices” matches this situation, so it’s the best fit. Non-price competition refers to competing on factors other than price (quality, service, branding), which isn’t about who has the leverage in a market. A sellers market, by contrast, occurs when demand exceeds supply, driving prices up, the opposite of what the scenario states. Price competition is about using price as the main weapon, which can happen in various market conditions but doesn’t define the specific balance of supply and demand described here.

This item is testing how market conditions shift power between buyers and sellers. When there is a surplus of goods relative to buyers, purchasers have more leverage because sellers must compete to attract buyers. That creates a buyers’ market, with lower prices and more options for buyers. The description “surplus of goods and lower prices” matches this situation, so it’s the best fit.

Non-price competition refers to competing on factors other than price (quality, service, branding), which isn’t about who has the leverage in a market. A sellers market, by contrast, occurs when demand exceeds supply, driving prices up, the opposite of what the scenario states. Price competition is about using price as the main weapon, which can happen in various market conditions but doesn’t define the specific balance of supply and demand described here.