Question

b) The supply chain in a market leads to increase of prices as it goes on. Use ar example to discuss this statement.​

Answer 1

Answer:

Supply chain in a market leads to increase of prices as it goes on, this is due to the addition of various middlemen at various steps.

Explanation:

For example, manufacturers are regarded as the Direct sellers of the commodity, if they are selling a pen for Rs. 5, the customer has to pay Rs. 5.

• If there is a middleman involved like a wholesaler the price may up and the customers can be charged Rs. 7.

With the addition of a retailer the price may even come upto Rs. 10

Thus, with every addition in supply chain the prices of the product definitely goes up.

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