In Which One of the Following Instances Is Supplier Bargaining

question 70

Multiple Choice

In which one of the following instances is supplier bargaining power and leverage not weakened?

• A) When industry members pose a credible threat of backward integration into the business of suppliers
• B) When the cost of switching from one supplier to another is low
• C) When the buying firms purchase in large quantities and thus are important customers of the suppliers
• D) When the item being supplied is a commodity
• E) When the items purchased from suppliers are in short supply

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Definitions:

Sport Utility Vehicles

Large vehicles combining the features of passenger cars with off-road capabilities and increased cargo space.

Gasoline Consumption

The total volume of gasoline used by vehicles or industries within a specific period.

Market Equilibrium

A market state where the supply of goods matches demand, with stable prices and quantities.