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GCE Economics 1989 Question 23

Question 23

Distributive Trade

One of the arguments against the presence of middlemen in the distribution chain is that they

  1. A.cause increases in the prices of commodities
  2. B.are commissioned agents
  3. C.helps in keeping prices stable
  4. D.grade and blend goods
  5. E.can be found almost anywhere.
Show the answer and explanation

Answer: A (cause increases in the prices of commodities)

Explanation

Each middleman adds his profit, so goods reach the consumer at a higher price.