Circumstances when a manufacturer may prefer selling directly to consumers.

1. When goods are perishable.
2. When the manufacturer is financially strong to open up retail outlet.
3. If the manufacturer wishes to take charge of marketing of the products.
4. When the manufacturer wishes to have direct contact with the consumers.
5. When the market for the product is limited.
6. When there is inefficient infrastructure. 

Effects of excess demand and excess supply on market prices

1. If the price is set at p2 below the equilibrium, then there is excess demand as more customers are willing to buy the low priced commodities.
2. At the same time, if prices are set at p1, above the equilibrium then there will be excess supply as sellers would be wiling to reap the most.
3. Since both conditions are unfavourable, the prices have to be adjusted towards the equilibrium.

Factors influencing decisions on what goods and services to produce.

1. Profitability – people produce goods whose return are faster and higher
2. Government policy – Trade produce goods that are allowed by the laws of the country
3. Availability of resources – Goods produces should be the one that have adequate resources
4. Level of competition – People produce goods whose competition is not there as compared with the one that have shift competition
5. Market – Goods which have market are greatly produced
6. Cost of production – Goods and services produce should be cheaper in terms of overall cost

With the aid of a diagram, explain the effect of an increase in the supply of a commodity while its demand remains constant.

Highlight four factors that may cause the supply curve to shift to the right.

The table below shows the demand and supply schedules for product A in a week.

Zawadi operates a hardware business in her home town. Outline four methods she may use to determine prices for her goods other than the forces of demand and supply.

The cost of consumer goods and services for a representative basket of an average family is given below.

The table given below represents the supply schedule of sukuma wiki (kales) for eight weeks in the months of January and February 2009.

Explain five negative effects that inflation may have on the economy of a country.

The diagram below represents the relationship between population and income per capita.

The figure below shows a shift in the supply curve of a given commodity.

The following table represents the price and quantity of a commodity

The diagram below shows an oligopolist kinked demand curve DD and current price and quantity at P and Q respectively.

Write the type of demand represented by each of the following statements

With the aid of a diagram, explain the behaviour of average cost curve in the short run for a firm with fixed production capacity.

The figure below shows a decrease in demand for a commodity from DD to D1D1.State four possible causes that have led to this situation.

The diagram below shows total cost curve of a firm in the short-run.Calculate the average variable cost of the firm.

Explain five factors that could affect the quantities of cabbages supplied in a market.

The diagram below shows the current demand for petrol. What is the effect of a fall in the price of cars on demand for petrol? Draw a new demand curve on the diagram above to show the effect of a fall in price or cars.