Market situation where there are only two buyers with many sellers is called?

The scenario described, where there are only two buyers in a market with many sellers, is accurately identified as a duopsony. In economic terms, a duopsony occurs when a market is dominated by two key buyers, influencing prices and purchasing decisions. This contrasts with other market structures where either sellers (as in a duopoly or oligopoly) or more than two buyers are present.

In this context, a duopsony specifically entails that the limited number of buyers hold significant power over the many sellers, allowing them to dictate terms, including pricing and production levels. This is crucial for understanding how power dynamics shift in a market with fewer buyers, as the sellers may have limited options for selling their goods.

On the other hand, concepts like duopoly involve two sellers rather than buyers, while oligopoly and oligopsony pertain to more than two sellers or buyers, respectively. Thus, the presence of just two buyers makes the duopsony label particularly relevant and accurate for the situation described.