Th3.4: ^^ Consumers Flashcards
1
Q
Why might customers gain from?
A
lower prices, as reduced costs are passed on
2
Q
It could lead to a fall in supply, since the business buys fewer inputs. What does the extent to which supply to customers will fall depend on?
A
depends on the price elasticity of supply in the market of which the monopsonist is a buyer - if inelastic, there will be little fall in supply
3
Q
What might they act as?
A
counter-weight to monopolists
4
Q
Why might there be a fall in quality?
A
as prices are driven down
