What characterizes a market with many buyers but only one seller?

A market characterized by many buyers but only one seller is known as a monopoly. In a monopoly, the single seller has significant control over the market and is the exclusive provider of a particular good or service. This means that they can set prices and output levels without direct competition, leading to unique market dynamics.

In such a scenario, the seller's pricing power often results in higher prices for consumers compared to competitive markets. With many buyers but no alternative providers, consumers have no choice but to purchase from the sole seller, making the seller's position very strong.

Understanding the concept of monopoly is crucial in supply and demand discussions, as it highlights how market structures can affect pricing, availability, and consumer choices. The presence of only one seller limits competition, which is a defining feature of a monopoly, contrasting with other market structures where multiple sellers exist.