A disadvantage of warehousing is that it__

Assessment: WAEC SSCE - Marketing - 2019 (Objective) Subject: Marketing

Question 1 Report

A disadvantage of warehousing is that it__

Answer Details
The disadvantage of warehousing is that it can encourage hoarding of goods to create scarcity. This happens because some individuals or companies may deliberately withhold or limit the supply of goods stored in a warehouse to create an artificial shortage in the market, which can drive up prices and increase their profits. However, this can harm consumers and lead to market inefficiencies, as well as negatively impact the economy as a whole.

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