When a supplier is able to increase the price of its product or reduce the quality of the product while maintaining the same price, that supplier possesses significant
A) bargaining power
B) substitute products
C) switching costs
D) capital requirements

Question

Quizplus · Accepted Answer

When a supplier can increase the price or lower the quality of the product, while customers are still willing to pay the same price, it shows that the supplier has significant bargaining power over the customers. This means that the customer has fewer options to choose from and is therefore forced to purchase the product at the supplier's terms.

When a Supplier Is Able to Increase the Price of Its