Question

A marketing channel without an intermediary has four sellers and four buyers. How many connections between buyers and sellers are needed to form a fully-functional market?

A. 8
B. 4
C. 32
D. 16

Answer 1

In a market with four buyers and four sellers without intermediaries, 16 connections must be formed to ensure a fully functional market where every buyer can interact with every seller directly.

option d is the correct

Step-by-step explanation:

To determine how many connections are needed between buyers and sellers to form a fully-functional market, we need to consider that each buyer should be able to buy from any seller, and each seller should be able to sell to any buyer without intermediaries. Hence, we calculate the total number of connections by multiplying the number of buyers by the number of sellers.

In this scenario, we have four sellers and four buyers. So, the total number of connections is:

4 sellers × 4 buyers = 16 connections

This means that with four sellers and four buyers in a market without intermediaries, 16 connections must be formed to allow every buyer to interact with every seller directly.