Answer:
d) the costs incurred by buyers in switching to competing brands or to substitute products are relatively high.
Explanation:
Bargaining power dictate the power that both the buyers and sellers have when influencing a deal so it goes to their favor. When the bargaining power of the buyers increase, the bargaining power of the sellers would be decreased and vice versa.
When the costs incurred by buyers in switching to other competitors are relatively high, The Sellers will have more bargaining power since they know that the buyers need to make a large economic sacrifice if they decided to not buying their products.
This means that the buyers bargaining power will become weaker, and they have to conform to the terms set by the sellers.
Why were ryots reluctant to grow indigo? Answer: The ryots were reluctant to grow indigo because: The planters paid a very low price for indigo. The ryots were not in a position to even recover their cost, earning a profit was a far-fetched idea.
Consumers usually make up the majority of a free market economy. Their role is spending. If there is a lack of spending of the consumer the free market suffers. If the spending decreases to much then it can cause a recession or a depression. The the government also usually keeps track of the consumer spending and use it as valuable information in seeing how stable the economy is .
