a)

- Finances producers by buying goods.

-Takes over storage expenses from producers.

- Saves producers risks of pricing, losses by buying goods.

-Prepares goods for sale on behalf of the producer e.g grading, blending.

-Gets market feedback from consumer on behalf of producers.

-Transports goods to retailer and consumer for producers.

b)

a)

i. Price control-The government may decide to control the price of essential commodities. This measure can only succeed if the government offers subsidy to the producers. This would cover the differences between the government set price for the commodity.

ii. Wage price indication-The government can instruct employers to ensure that wage are regularly adjusted to keep pace with the increase in inflating rate.

iii. Government participation in business-The government could participate in production thought the state corporation this could rain output and therefore help in controlling inflation originating from supply side factors. The government could concentrate more on production of essential goods and other commodities that private sector may find unprofitable to produce.

iv. Rationing of commodities-The government could ration a scarce commodity. This could involve the setting of a specific maximum quality that each person can purchase per given period. However the measure would not be effective in liberalized market economy

b)

b)

-A large number of sellers and buyers.

-Homogeneous products.

-Free entry and exit of firms.

-No government interference.

-Perfect knowledge of the market by both buyer and sellers.

-Perfect mobility of factors.

-No transport costs.

a)

-Road is faster, thus he can deliver his maize in good time.

-Road is flexible since his maize can be collected at his door-step and delivery in the same way.

-Low chances of loss/damage due to minimized handling.

-Farmers can have more control over transport problem especially by owning his trucks/lorries.

-No fixed time schedule thus collection and delivery can be done conveniently.

b)

(a)

- Taxes on imports & exports.

-Fines imposed by courts on offenders.

-Rent and rates paid for use of government property.

-License fees paid by business.

-Dividends/profit; earned, by government firms.

-Governments borrowing either internally or externally.

-Grant/aids received by the government.

(b)

-Family and social ties.

-Ignorance of existing opportunities.

-Government policy that discourages movement.

-Language barriers.

-High costs of movement.

-Adverse climatic condition.

-Lack of security.

-Political instability.

-Prejudice.

(a)

-There is stiff competition among sellers of similar products e.g mobile phone services provider.

-Modern technology e.g internet has revolutionized the method of product promotion.

-Consumer awareness has increased and product promotion has become more accurate, truthful & ethical.

-Many businesses are seeking publicity in the media e.g T.V and newspapers.

-Exhibitions and trade fairs have widely been used as methods of product promotion.

-More emphasis has been put on use of posters, billboards, brochures, travelling salesmen because of increased literacy.

-There has been increased use of electronic media e.g radios and television in advertising.

(b)