Question 13
WarehousingA disadvantage of warehousing is that it
- A.makes goods available when needed.
- B.protects goods from damage.
- C.encourages hoarding of goods to create scarcity.
- D.prevents a reduction in the quality of goods.
Show the answer and explanation
Answer: C (encourages hoarding of goods to create scarcity.)
Explanation
Storage can be abused to hoard goods and push up prices.