1. Abdullah, a manufacturer, exhibited his goods in a local trade shows. However his sales did not increase significantly thereafter. Outline five reasons that may have led to lack of significant sales increase. (10mks)

2. Describe the procedures involved in personal selling methods of sales promotion. (10mks)

3. Outline five ways of attracting customers that traders may put into use. (10mks)

4. Explain five benefits that a trader would get by advertising his goods through the radio. (10mks)

5. Explain the reasons why the firms with popular products find it necessary to continually advertise the same products. (10mks)

6. A multinational company is planning to launch its products in the local Kenyan market. Highlight the factors that should be considered by the company when choosing the appropriate media through which to advertise the products. (10mks)

7. Explain the role of a sales department in a business firm (10mks)

8. What are the benefits accruing to a seller who uses personal selling methods to promote her products. (10mks) .

9. Advertising in the newspaper is one way of promoting sales of goods. Highlight five limitations of advertising goods in newspapers. (10mks)

DEMAND AND SUPPLY

1. Indicate by writing a demand or supply whether each of the following factors influence demand or supply of a commodity. (5mks)

a) Changes in the prices of inputs

b) Change in tastes and preferences.

c) Changes in technology

d) Changes in outcomes

e) Changes on the price of other related products.

2. 1996 State the law relating to each of the following.

a) Demand

b) Supply

c) Demand and supply

3. In each of the following cases, indicate whether the supply will increase, decrease or remain constant.

a) If the demand for coffee rises, the supply of tea is likely to

b) If the prices of cars fall, the supply of petrol as likely to

c) if the demand for beef increases the supply of wool is likely to

4. State four factors that may cause an increase in the supply of a product. (4mks)

5. Outline four factors that may cause a decrease in the quantity demand for a product. (4mks)

6. Draw a demand curve based on the demand schedule below Price (Sh) Quantity demanded 5 100 10 50 20 25 25 5 (4mks)

7. The following diagrams represents demand and supply of a product. (5mks)

a) Labels the cover (a) and (b)

b) State what is represented by point (c)

c) On the diagram, indicate equilibrium price (PE) and equilibrium quantity (QF).

8. State four factors that may lead to an increase in market supply of a product. (4mks)

Identify four factors that have made the demand curve to shift from d0d0 to d1d1

a) The nature of the demand for the commodity

b) The nature of the supply of the commodity

c) The equilibrium price

d) The equilibrium quantity.

1. outline four ways in which the price of goods and services can be determined in the market other than through the forces of demand and supply curve.