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WAEC Marketing 2021 Question 28

Question 28

Warehousing

A disadvantage of warehousing is that it

  1. A.encourages hoarding of goods to create scarcity.
  2. B.ensures the availability of goods when needed.
  3. C.helps to protect goods from damages.
  4. D.ensures availability of storage facility for goods.
Show the answer and explanation

Answer: A (encourages hoarding of goods to create scarcity.)

Explanation

Warehouses can be used to hoard goods and create artificial scarcity.