A situation in which supply exceeds demand, prices are relatively low, and buyers have an advantage.

A situation in which supply exceeds demand, prices are relatively low, and buyers have an advantage.

• A. Price Competition
• B. Direct Competition
• C. Buyers Market
• D. Sellers Market

Answer: (C)

When supply outweighs demand, the market tilts in favor of buyers. There are more goods available than buyers want, so sellers must lower prices or offer better terms to attract purchases. This creates greater choice for buyers and more negotiating leverage, which is why this situation is called a buyers market. In contrast, a sellers market happens when demand exceeds supply, pushing prices up and giving sellers the upper hand. Price competition describes a tactic where sellers compete mainly on price, not the overall market balance. Direct competition refers to rivalry among specific brands or firms, not the broader market condition.

When supply outweighs demand, the market tilts in favor of buyers. There are more goods available than buyers want, so sellers must lower prices or offer better terms to attract purchases. This creates greater choice for buyers and more negotiating leverage, which is why this situation is called a buyers market.

In contrast, a sellers market happens when demand exceeds supply, pushing prices up and giving sellers the upper hand. Price competition describes a tactic where sellers compete mainly on price, not the overall market balance. Direct competition refers to rivalry among specific brands or firms, not the broader market condition.