Question

Identify the argument against elimination of wholesalers.

• A. Wholesalers take all responsibilities for sales and distribution of goods, producers become free from the difficulties and troubles of marketing their products.
• B. During the slack seasons and scarcity in demand, the wholesalers resort to hoarding and stocking of goods and sell them at exorbitant prices charging excessive profits.
• C. Wholesalers are unnecessary links between the manufacturers and retailers.
• D. All of the above.

Answer 1

The correct option is A Wholesalers take all responsibilities for sales and distribution of goods, producers become free from the difficulties and troubles of marketing their products.

Wholesalers are middlemen between the manufacturers and the retailers. They increase the cost of marketing and price of the products goes up. The consumers have to pay higher price. By eliminating wholesalers, prices of the products will decrease and the consumer shall benefit. The manufacturers will be earning more profit on account of lesser prices of the products.