Alfred Ajibola
- Wed, 22nd January, 2020 @ 7:01 PM
Topics in Economics
Types of capital market: Primary market and secondary market Capital market explained with its functions Basic tools for economic analysis: Graphs explained with its characteristics and importance Basic tools for economic analysis: Tables explained with its characteristics and importance Factors affecting population in economics Advantages of Inflation Disadvantages of Inflation Concept of Inflation in Economics Scheme of work for Economics, SS1, First Term Scheme of work for Economics, SS1, Second Term Scheme of Work for Economics, SS1, Third Term Functions of the Wholesaler Advantages and Disadvantages of the Wholesaler Wholesale Market: Who is a Wholesaler? Characteristics of the Wholesaler Retail Market: Who is a Retailer and Examples of Retailers Market: Types of Market What is a Market in Economics? Elasticity of supply explained with its types Supply Elasticity: Elasticity of Supply explainedAcademic Questions in Economics
_____ is defined as a gradual and sustained rise in price level of goods and services in relation to their availability.
A. Basis Point Rate
B. Hike Rate
C. Elastic Supply
D. Elasticity of Price
E. Price Inflation
F. Aggregate Supply
The wholesalers can bring about an economy of scale.
A. True
B. False
Which of the following statement isn't a characteristics of the wholesaler?
A. They may have to operate in specific areas or regions accorded them by the producer
B. They are often popular in the line of goods they supply
C. They are not risk bearers
D. They have good storage facilities
E. They often pay for goods supplied by the manufacturers in advance
F. They usually have business agents or brokers
The wholesalers act as the middlemen in supply chain.
A. True
B. False
Large retailers who buy directly from manufacturers are termed as _____.
A. Wholesale Retailers
B. Certified Retailers
C. Codified Retailers
D. Commodity Retailers
E. Manufacturers Retailer
F. Conspicuous Retailers
_____ is a market whereby the sellers buy goods in lesser quantities from the wholesalers and sells in bits to the final consumers.
A. Commodity
B. Retail
C. Wholesale
D. Labour
E. Common
F. General
Which of the following is not a financial market?
A. Money Market
B. Bond Market
C. Foreign Exchange Market
D. Virtual Market
E. Capital Market
F. Stock Exchange Market
A _____ market provides a platform whereby job seekers link up with employers in an attempt to be hired.
A. Wholesale market
B. Bond market
C. Physical market
D. Virtual market
E. Factor Market
F. Labor Market
The retail market is a market whereby the sellers (called the retailers) buy goods in lesser quantities from the wholesaler (or even the manufacturer) and must sell in units or bits to the final consumer.
The goods sold and services rendered in a retail market are termed consumer goods and services.
Nowadays, certain companies are beginning to act as both producers and retailers. In this way, they cut out the wholesalers from the market scene. The company Apple is an instance here.
Apple have some of its retail outlets (shops) around the world where they sell directly to their customers.
In another instance, a manufacturing company may authorize another company to sell its products directly to the consumers. Amazon and Walmart are examples of retailers in this instance.
Amazon get commissions from manufacturing industries whenever they sell their products directly to the consumers.
Other examples of large retailers (who buys directly from manufacturers) include Jumia, Shoprite, Alibaba and Konga.
The large retailers who buys directly from manufacturers are often regarded as certified retailers. In this case, the buyers are assured via a warranty which contains an effective return policy from the manufacturer through the retailer. For this reason, it is considered a better option to buy from large retailers, especially goods that come with exorbitant prices.
Please read on consumer rights and protection here.
In general, the large retailers are not the only option open to consumers in the market. In fact, we have more of small to medium sized retailers scattered in our environment. These will include:
The woman who sells foodstuffs by the roadside.
Please read on business structure (sole proprietorship) here.
Peddlers: A peddler is a person who moves from on place to another in order to sell their products (usually specific products) to consumers. They may also be referred to as hawkers or pitchmen.
Recreational shopping and window shopping.
The sale of consumer goods in the supermarkets and shops within our community.
The sale of goods by the road side or in traffic.
Young boys and girls hawking fruits on the streets. It is important to state that teenage hawking is a condemnable act and is considered as one of the harmful traditional practices in Africa.
Please read on harmful traditional practices in Nigeria here.
These above instances are classic examples of retailers who will typically buy their goods from the wholesalers.
Please read on the types of market based on commodities bought and sold here.
Concerning retailers, there is this concept termed electronic retailing (or e-retailing).
Electronic retailing is the process of selling goods and services through the internet. Most of the large retailers typically operates an e-retailing system. Through this process, they deliver the purchased goods and services to the appropriate consumer either at a specified location or their place of residence.
Please read on the internet and world wide web here.
At the time of writing this article, Amazon is the largest retailing and e-retailing organization in the world. Its founder is the richest man in the world during that time.
Unlike the producers and wholesalers, a retailer will often sell a variety of products in his or her shop.
Retailers may also be referred to as merchants in some cases.
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Amazing facts in Economics
Notable points in Economics
A unitary elasticity of supply is seen when a change in price brings about a corresponding and proportional change in the quantity of goods or services supplied.
The graph below shows a unit elasticity of supply:
Below is an instance of a unitary elasticity of supply:
If a 100% increase in the price of wheat translates into a 100% increase in the production and supply of wheat, then the supply elasticity is said to be unitary elastic and its value is equal to 1.
Unitary elasticity is always equal to 1, that is: Es = 1
The supply curve runs diagonally and will pass through the center.
Supply elasticity is defined as the rate at which an increase in price of goods translates into its increased production and availability in the market. Supply elasticity is also termed as price elasticity of supply.
Consider the statements below:
If a 100% increase in the price of rice translates into a 100% increase in the production and supply of rice, the supply elasticity is said to be unitary elastic and its value is equal to 1.
If a 100% increase in the price of rice translates into a 50% increase in the production and supply (quantity) of rice, the supply elasticity is said to be inelastic and its value will be greater than zero and less than 1. In this case, the exact value is 0.5: (value of change in the quantity of rice divided by value of change in price of rice = 50/100 = 0.5).
The individual demand schedule is a table that shows the demand of a commodity that an individual (consumer) purchased at various prices, and at a particular time.
The table below shows an individual demand schedule:
|
Price in Naira (of a tuber of yam) |
Quantity demanded (per week) |
|
500 |
5 |
|
400 |
10 |
|
300 |
15 |
|
200 |
20 |
|
100 |
25 |
The market demand schedule is also referred to as an aggregate demand schedule, total demand schedule or composite demand schedule.
This is a table that shows the different commodities purchased by all the consumers or customers in the market.
The market demand schedule is the summation of the individual demand schedules, showing the demand of different customers for a commodity at a particular price. It is shown in the table below:
|
Unit price of commodity (Naira) |
Quantity demanded by consumer A (QA) |
Quantity demanded by consumer A (QB) |
Market demand (QA + QB) |
|
50 |
20 |
15 |
35 |
|
40 |
40 |
30 |
70 |
|
30 |
60 |
45 |
105 |
|
20 |
80 |
60 |
140 |
|
10 |
100 |
75 |
175 |
From the above table, notice that when the unit price of the commodity was 50 Naira, consumer A demanded 20 quantities while consumer B demanded 15 quantities.
Below are definitions of demand from the perspective of some notable professors:
The demand for goods is a schedule of the amounts that buyers would be willing to purchase at all possible prices at any one instant of a time.
Professor Mayers
Demand is the various quantities of goods that would be purchased per time period at different prices in a given market.
Professor Hibdon
The demand for anything, at a given price is the amount of it which will be bought per unit of time at the price.
Professor Benham
Generally, demand is defined as the willingness of a person, buyer or consumer to buy a specific quantity of goods or service at a given price and time.
From the above definitions, we can infer that the definition of demand is referenced to three major factors. These are:
Quantity of Goods Demanded
Price
Time