International Baccalaureate (IB) Practice Exam

If you want to buy something, whose responsibility is it to set the price?

1. The buyer must set a competitive price

2. The seller should dictate the price

3. It’s the responsibility of the negotiation to establish value

4. The buyer should make the seller work for the sale

The correct answer is: The buyer should make the seller work for the sale

The correct rationale behind the choice that emphasizes the buyer's role in making the seller work for the sale lies in the dynamics of a negotiation process. Typically, the seller has a starting price in mind, which reflects their perceived value of the item, including costs and a profit margin. However, effective negotiation often places the onus on the buyer to engage skillfully, assessing the product's worth and leveraging their negotiation skills to obtain better terms. In practice, this means that the buyer may assert their preferences and requirements, compelling the seller to demonstrate the item's worth or to adjust their pricing strategy to finalize the sale. This engagement is essential for establishing not just a transactional agreement, but also a fair exchange that satisfies both parties' interests. Ultimately, the buyer's active role in negotiations helps ensure that they are not only passive consumers but also influential participants in the pricing conversation. The other interpretations—such as the seller dictating price or assuming that competitive pricing by the buyer is necessary—fail to capture the cooperative, interactive essence of price determination, which fundamentally relies on negotiation between both parties.