In a reverse auction, as the number of sellers increases, the price
A) increases.
B) stays the same.
C) has no relation to the number of sellers.
D) decreases.
E) fluctuates depending on economic conditions.

Question

Quizplus · Accepted Answer

In a reverse auction, more sellers typically lead to increased competition, which tends to drive the price down as sellers compete to offer the lowest bid.

In a Reverse Auction, as the Number of Sellers Increases