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WAEC Marketing 2019 Question 13

Question 13

Warehousing

A disadvantage of warehousing is that it

  1. A.makes goods available when needed.
  2. B.protects goods from damage.
  3. C.encourages hoarding of goods to create scarcity.
  4. 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.