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WAEC Economics 2007 Question 23

Question 23

Distributive Trade

A negative effect of the presence of a large number of middlemen in the distributive network is

  1. A.greater variety of goods
  2. B.greater quality of goods
  3. C.lower price of goods
  4. D.higher price of goods.
Show the answer and explanation

Answer: D (higher price of goods.)

Explanation

Each middleman adds a profit margin, so many middlemen raise the final price.