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WAEC Economics 1997 Question 32

Question 32

Distributive Trade

Hoarding in distributive trade leads to

  1. A.non-availability of commodities
  2. B.production of inferior goods
  3. C.increase in the supply of goods
  4. D.decrease in the price of goods
  5. E.artificial scarcity of goods
Show the answer and explanation

Answer: E (artificial scarcity of goods)

Explanation

Hoarding keeps goods off the market although they exist, creating artificial scarcity and higher prices.