16.

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. 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

a)

Labels the cover (a) and (b)

b)

State what is represented by point (c)

c)

7. 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)

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

a)

10. 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.

11. 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.

12. State disadvantages of concentrating industries in one area within a country. (4mks)

13. Highlight four circumstances under which a firm would be located near the market for

its product. (4 marks)

14. Outline four ways in which land influences the location of industries.

(4 marks)

15. State four circumstances under which a firm would be located near the market for its

products.

16. State four advantages of locating a firm near the source of raw materials.

(4 marks)

17. Identify four problems that tend to limit the growth of small -scale retail business in

rural Kenya.

(4 marks)

18. Highlight four measures a government may take to attract firms to an area. (4 marks)

19. state four disadvantages of locating a business away from other related business.

(4 marks)

20. state four disadvantages of delocalization of industries to a country. (4 marks)

22. State four factors which influence the location of business enterprises.

(4 marks)

23. State four measures that local authority could take in order to attract investors to locate

their industries within its boundaries.