A major effect of a long distribution chain is

Analyze the question: A distribution chain is the route goods take from producer to final consumer (producer → wholesaler → retailer → consumer). A long chain has many intermediaries. The question asks for its major effect.

Concept: Each intermediary (wholesaler, sub-wholesaler, agent, retailer) buys the goods and adds a profit margin plus handling, transport and storage costs. These extra costs build up along the chain, and the final consumer pays all of them.

Step-by-step reasoning:

• A. Scarcity of commodities: A long chain can cause delays, but scarcity is not its direct or major effect. It is more often caused by hoarding or low supply.
• B. High retail (prices): Each middleman adds a margin, so the price rises at every stage, and retail prices end up high. The option is worded incompletely ("high retail"), but it clearly means high retail prices, especially next to option C, "low retail prices".
• C. Low retail prices: This is the opposite of what happens. More middlemen mean higher prices, not lower.
• D. Low producer earnings: This can happen in some cases, because middlemen take a share of the profit. But the more direct and universal effect of a long chain is the higher price paid by consumers.

Illustration: Producer sells at ₦100 → wholesaler adds ₦20 = ₦120 → sub-wholesaler adds ₦15 = ₦135 → retailer adds ₦25 = ₦160 for the consumer. The more links there are, the higher the final price.

Answer: B (high retail prices).

Exam tip: In Economics, "long distribution chain" almost always points to "higher prices for consumers". Remember: more middlemen = more margins = higher retail price. Cutting out middlemen, as with direct sales or cooperative societies, lowers prices.