When three buyers purchase the products of three producers, nine transactions are required. If one intermediary serves both producers and buyers, the number of possible transactions is
A)fifteen.
B)five.
C)eighteen.
D)six.
E)twenty.

Question

Quizplus · Accepted Answer

If there is one intermediary who serves both producers and buyers, then the intermediary needs to make the transaction with the producers first and then with the buyers. Therefore, there are only six transactions required:
1. Intermediary purchasing from producer 1
2. Intermediary purchasing from producer 2
3. Intermediary purchasing from producer 3
4. Intermediary selling to buyer 1
5. Intermediary selling to buyer 2
6. Intermediary selling to buyer 3

Therefore, the answer is D) six.

When Three Buyers Purchase the Products of Three Producers, Nine