Which of the following statements describes suppliers in a position of strong bargaining power?
A) coffee planters during a season of frost that decreases production
B) companies negotiating supplier contracts after taxes on raw materials have been reduced
C) providers of logistic support when fuel prices have been reduced
D) wholesalers declaring end-of-season sales

Question

Quizplus · Accepted Answer

When coffee planters face unfavorable weather conditions such as frost, it decreases their production which gives them less coffee to sell. As a result, the suppliers of coffee in this situation are in a position of strong bargaining power as they now have less product to supply, allowing them to demand higher prices.

Which of the Following Statements Describes Suppliers in a Position