An auction where visitors describe items or services they want to buy, and a group of participating merchants reply with offers to supply the item at a particular price is called a _____.
A) second-price sealed bid
B) seller-bid
C) first-price sealed-bid
D) reverse bid

Question

Quizplus · Accepted Answer

The given scenario describes a reverse auction where buyers describe their requirements, and sellers bid to fulfill the demand by offering competitive prices. Hence option D, "reverse bid," is the correct answer. Option A, "second-price sealed bid," and option C, "first-price sealed-bid," refer to sealed auctions where buyers submit confidential bids, and the highest bidder wins. Option B, "seller-bid," is not a valid auction type as sellers generally do not bid on their products/services.

An Auction Where Visitors Describe Items or Services They Want