1. Is it fair that a buyer can exert so much power over a supplier? Are there any benefits to consumers?
2. Should the government step in and set minimum price levels? Discuss the consequences of your answer.

You’ve heard of a monopoly, but have you ever heard of a monopsony? A monopsony involves one powerful buyer and many sellers. The buyer is so powerful that it can drive prices down. An example is Wal-Mart, the world’s largest retailer. Wal-Mart’s power allows it to get the lowest possible prices from its suppliers. Similarly, wine-making giant E. & J. Gallo has so much power buying grapes that growers have to concede to the wine maker’s demands for lower prices.