The Power of a Distributor May Be Weakened If

question 37

Multiple Choice

The power of a distributor may be weakened if:

• A)there is only one intermediary
• B)there are too many options for manufacturers and wholesalers
• C)direct sales to final consumers are prohibited
• D)trade barriers are removed
• E)competition decreases

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Definitions:

Price Floor

A government-imposed minimum price charged for a commodity, intended to ensure fair conditions for producers.

Equilibrium Price

Equilibrium price refers to the price point in the market where the amount of goods provided matches the amount of goods consumers want to buy.

Rent Control

Government-imposed limits on the amount landlords can charge for leasing residential properties, intended to make housing affordable.

Short Run

A period in economics during which at least one factor of production is fixed, limiting the ability of a business to adjust fully to market changes.