JAMB Commerce 2001 Question 15

Question 15

Wholesale Trade

One of the reasons why wholesaling must continue is that

  1. A.the tax paid by wholesalers on their profit enhances national revenue
  2. B.by creating artificial scarcity, the wholesaler is enhancing competition in the economy
  3. C.the wholesaler provides technical advice to the retailer
  4. D.the gap between manufacturers and retailers is reduced by wholesalers.
Show the answer and explanation

Answer: D (the gap between manufacturers and retailers is reduced by wholesalers.)

Explanation

Wholesalers link manufacturers and retailers, bridging the gap between them.