Which of the Following Most Accurately States the Function of Middlemen

question 86

Multiple Choice

Which of the following most accurately states the function of middlemen?

• A) Middlemen add to the expense of buyers and sellers without providing any benefit.
• B) Our economy would work just as well without middlemen since they do not expand the availability of physical goods.
• C) Middlemen reduce the number of transactions since they increase the buyer's price and reduce the seller's net revenue.
• D) Middlemen create value by arranging trades and providing information to buyers and sellers.

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Definitions:

English Major

An academic concentration focused on the study of English literature, language, and writing.

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The price at which the quantity of goods supplied equals the quantity demanded, resulting in market stability without surplus or shortage.

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The quantity of goods or services that is supplied and demanded at the equilibrium price, where market supply and demand balance out.