Which function of the wholesaler enables him to stabilize prices?

Step 1: Analyze the question The question asks which wholesaler function helps stabilize prices. Price stability means avoiding big swings caused by seasonal supply and demand.

Step 2: Explain the concept Many goods, especially agricultural products like yam, maize, tomatoes and garri, are produced seasonally.

• Harvest season: supply is high, so prices would normally fall sharply.
• Off-season: supply is low, so prices would normally rise sharply.

A wholesaler who warehouses (stores) goods buys and stores them when they are plentiful and releases them when they are scarce. This evens out supply across the year, so prices stay relatively stable.

Step 3: Evaluate the options

• A. Warehousing goods: Storage evens out supply over time, which stabilizes prices. ✔
• B. Advertising the goods: This promotes sales and informs buyers, but it does not control supply or price swings.
• C. Granting credit to retailers: This helps retailers finance their stock, but it has no direct effect on price stability.
• D. Transporting goods: This moves goods from place to place (a place utility), but it does not manage supply over time.

Step 4: Answer The correct option is A. Warehousing goods.

Tip: Link keywords to functions. "Stabilize prices" means "storage/warehousing", "bridge the gap between producer and retailer" means "break bulk", and "financing retailers" means "credit". Also remember that storage creates time utility, while transport creates place utility.