Which of the following are examples of direct distribution channels in economics?

• A. A farmer selling produce directly to consumers at a local market and a manufacturer selling products through its own website
• B. A wholesaler distributing goods to retailers and a retailer selling products to consumers
• C. A manufacturer using an independent distributor and a retailer using a third-party delivery service
• D. A producer selling goods to a wholesaler and a wholesaler selling to a retailer

Answer: (A)

Verified step by step guidance

1. Understand the concept of a direct distribution channel: it occurs when the producer or manufacturer sells goods or services directly to the final consumer without intermediaries.
2. Identify examples where the producer or manufacturer interacts directly with the consumer, such as a farmer selling produce at a local market or a manufacturer selling products through its own website.
3. Recognize that indirect distribution channels involve intermediaries like wholesalers, retailers, or independent distributors who act as middlemen between the producer and the consumer.
4. Analyze each option to see if the transaction involves intermediaries (indirect) or direct sales from producer to consumer (direct).
5. Conclude that examples involving direct sales from producer to consumer, without intermediaries, represent direct distribution channels.