Questions.

1. 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

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

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

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

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

6 State four factors that may lead to an increase in market supply of a product. (4mks) 7.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.

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

9. Highlight four circumstances under which a firm would be located near the market for its product. (4 marks)

10 Outline four ways in which land influences the location of industries. (4 marks)

11. State four circumstances under which a firm would be located near the market for its products. (4 marks)

12 The diagram below shows a shift in demand curve from d0d0 to d1d1. d0 d1 d0 d1 Quantity Price

13. The table below illustrates the demand and supply of commodity. Price Quantity demanded kg Quantity Kg per month kg per month 15.00 80 20 20.00 70 30 25.00 60 40 30.00 50 50 35.00 40 60 40.00 30 70 From the table above, state .

14 State four advantages of locating a firm near the source of raw materials. (4 marks)

15. Identify four problems that tend to limit the growth of small -scale retail business in rural Kenya. (4 marks)

16. Highlight four measures a government may take to attract firms to an area. (4 marks) 17. state four disadvantages of locating a business away from other related business. (4 marks)

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

19 State four factors which influence the location of business enterprises. (4 marks)

20. State four measures that local authority could take in order to attract investors to locate their industries within its boundaries. (4 mark