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
A wholesaler is a trader who purchases goods in large quantities from the manufacturer and resells them to retailers in small quantities.
It is noteworthy to state that an understanding on the characteristics of a wholesaler will aid you to better understand who the wholesalers really are. This may prove useful in times of examination.
Please read on the wholesale market here.
Below are the characteristics or features of the wholesaler:
They buy goods in large quantities directly from the producers or manufacturers and sell in smaller quantities or bits to the retailers.
Please read on retail market here.
The wholesaler will usually have business agents or brokers whose function is to distribute their goods to the different regions of a country.
The wholesalers act as the middlemen in the supply chain since they are always present between the producers and retailers.
Please read on supply and law of supply and supply curve here.
They usually have a license to shop from the producers. This means that they will have a license or some form of permission to operate with the manufacturers.
The wholesaler may have to operate in specific areas or regions (of a state or country) accorded them by the producers.
The wholesalers will often provide transport facilities to move goods from the producers factory (and to the retailers business place).
You can read on transportation here.
The wholesaler will usually sell goods to the retailers on the payment of cash (or on credit).
Please read on bank notes and coins as means of payments here.
The wholesaler will often specialize on one type of product (or a few related products). For this reason, they become popular in regards to the line of goods they supply.
You can read on the types of production here.
They have good storage facility for the goods purchased from the producers. For this reason, they store large quantities of goods and may keep them for long durations. The term 'warehouse' is used to describe where the goods are stored.
You can read on the problems of agricultural in Nigeria here.
The wholesaler provides valuable information to the producers concerning the demand and acceptance of their products. In addition, they provide valuable information to the retailers and may even suggest reasons why they should buy their products.
The wholesaler will often sell goods at a fixed price. In some cases, the price of his or her goods may vary due to the forces of demand and supply.
Please read on the demand and law of demand here.
Wholesalers may market the producer's goods via the various advertisment methods. Together, the producers, wholesaler and retailers benefits from this act.
Please read on advertising here.
Although their profits on the sale of goods can be quite low, this is augmented by their sale of large quantities of goods which inturn increases their overall profit.
The wholesaler is a risk bearer. This is true because the burden of an unexpected fall in the prices of goods, or possible damages on goods, spoilage and other unforseen adversities are mainly carried by the wholesaler.
The wholesaler usually have large shops strategically located in the markets within a city.
Please read market and types of market here.
The wholesaler will usually pay in advance for the goods of a producer or manufacturer.
They usually operate a Business to Business (B2B) business model.
Please read on more on business here.
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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
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