Question

In a situation where buyers have fewer competitors than sellers, who has the advantage?

a. sellers
b. buyers
c. both buyers and sellers
d. neither buyers or sellers

Answer 1

If sellers are many then the level of competition will be higher then companies will be operating for lower margin in that case the buyers will be at the advantageous position. And if sellers are less then it means that the price that they will quote the buyers have to pay i.e., due to less competition companies can increase the price and they will be at the advantageous position.

If buyers are many it means that in any case their will be equilibrium in demand and supply. Thus due to high competition the price will come down it will be advantageous for buyers at the same time more units the company will be seling then due to higher sales their revenue will also increase so they too will be at advantageous position.

If the buyers as well as sellers are less it means that the buyers require such product for which there is no close substitute and in this case the company producing such product can quote a higher price so it will be advantageous for the company (sellers).

Answer 2

And in your question i feel u want to know when Buyers are less and sellers are many.

In this case the buyer is having a wide number of choices among the various sellers and due to lil bit higher competition the seller will be operating on lower margin hence the buyer will be at advantageous position.