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Which of the following statements is true about pricing in competitive, mature markets?
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3. Supply and Demand
Introduction to Supply and Demand
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Manufacturers make products and sell them to ______, who resell the merchandise to retailers.
A
producers
B
distributors
C
wholesalers
D
consumers
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Understand the supply chain in microeconomics: products typically move from manufacturers to intermediaries before reaching the final consumers.
Identify the role of each option: producers create the products, consumers buy for personal use, retailers sell directly to consumers, and distributors or wholesalers act as intermediaries.
Recall that wholesalers purchase large quantities from manufacturers and then sell smaller quantities to retailers.
Recognize that the question asks for the group that buys from manufacturers and resells to retailers, which matches the role of wholesalers.
Conclude that the correct term to fill in the blank is 'wholesalers' because they serve as the middlemen between manufacturers and retailers.
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