Final answer:
Venice and Florence were merchant oligarchies, with power concentrated in the hands of wealthy merchants and elite families, despite their republican appearances.
Therefore, Option E is correct.
Step-by-step explanation:
Italian city-states such as Venice and Florence during the late Middle Ages and the Renaissance can best be described as merchant oligarchies. Although Florence styled itself as a republic with ideals of individual freedom and a constitution to limit nobility's power, political influence was concentrated among middle-class merchants, affluent families, and guilds. Venice, with its republican government led by a Doge, thrived on commerce and had a sophisticated political system designed to prevent any single person or group from gaining absolute power. Both cities were urban economic powerhouses with a high level of urbanization and significant trade that facilitated wealth accumulation, reflecting oligarchic tendencies rather than democratic inclusion.