Which of the following types of auctions is an example of multiple sellers creating the lowest prices to buyers?
Which of the following types of auctions is an example of multiple sellers creating the lowest prices to buyers?
In a reverse auction, multiple sellers bid competitively to offer the lowest price to a buyer. Unlike traditional auctions where buyers bid up the price, reverse auctions drive prices down as sellers undercut each other to win the buyer's business. This clearly demonstrates a scenario where the lowest prices are created by multiple sellers.
Reverse Auction is the right answer.
In a Dutch auction, the price of an item starts high and decreases until a buyer bids on the item. This means that the lowest prices are created by multiple sellers competing with each other to sell their items.