Which function of the wholesaler enables him to stabilize prices?

A. Warehousing goods
B. Advertising the goods
C. Granting credit to retailers
D. Transporting goods

Correct Answer:

Option A = Warehousing goods

Explanation

One function of the Wholesaler is that he serves as a warehouse for the manufacturer. The wholesaler provides warehousing facilities to get rid of stockpiling at the production point. Goods are stored at the warehouse until they are bought, hence it gives the wholesaler an edge in the bargaining power of the products. He can decide to keep the goods as long as possible and sell them at a price he considers considerable.