high retail prices
scarcity of commodities
low retail prices
low producer earnings
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It right. My point!
High retails prices can stop the consumer for buying a product if the utility is less to the price. Using scientific method.
Scarce? scarce is limited, and if there is a scarce, which is cos by an inadequate resources, this will slow down distribution or supply of goods to their channels.
The selected answer is wrong:
it is actually A cause the longer the distribution chain clearly means that it passes through a lot of ppl i.e is producers,retailers etc and as the commodity is passing from one person to another the price is getting higher bcos hu does not want to make gain
REF: Check essential economics page
A major effect of a long distribution chain is:
Increased Costs
1. *Higher costs*: More intermediaries in the distribution chain can lead to increased costs, including transportation, storage, and handling fees.
2. *Price escalation*: These added costs are often passed on to consumers, making the final product more expensive.
Long distribution chains can also lead to:
1. *Reduced efficiency*
2. *Increased risk of damage or loss*
3. *Decreased control over the distribution process*
These factors can negatively impact both businesses and consumers.
