Question

case:

The average people in a country use about 20 barrels of oil each year in a country. And the usage of this commodity is not avoidable. This is one of the important parts of our expenditure, and this is the commodity where the price will change quite often.

Years before, around 2010 there were a long period of high prices. And this affects the largest

part of this sector, production stopped because of the hike in prices and the demand side got the final effect. To manage this situation, the government provides funds for research, to identify the source of reducing the production cost so as to fix low price.

The period of high prices affects the oil industry a lot and they decided to increase the supply.

Q:

When a seller is forced to sell below the “reserve price”, Comment this with the realty in the supply market?

Answer 1

The seller isn't obligated to sell the item to you if the reserve price isn't met. You may place a bid and end up as the highest bidder only to learn, after waiting days or weeks, that the reserve was not met and the seller won't sell to you.A reserve price is a minimum price a seller is willing to accept from a buyer. In an auction, the seller is not required to disclose the reserve price to potential buyers. If the reserve price is not met, the seller is not required to sell the item, even to the highest bidder.

When you place a reserve on your item, you're charged an insertion fee based on the amount of the reserve plus the reserve price charge. Fixed-price listing fees are pretty clear-cut. ... If your item doesn't sell, don't think you can get your insertion fees back.

If you have placed your maximum bid, just wait. Even if the reserve isn't met, the seller has the option to send you a Second Chance Offer, which is an offer to the highest bidder. You may be the highest bidder and the seller may decide to come down in price if she realizes that she isn't going to get her asking price.

Don't bid on another auction listing for the item, assuming that you've not won this one. Wait until the first auction closes and you are not the winner. If you bid on another similar item at the same time, you could be obligated to buy two of them.