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)(i)Outline four circumstances under which middlemen can be eliminated from the chain of distribution.(ii)The table below shows the trends in inflation rates of country...

      

(a)(i)Outline four circumstances under which middlemen can be eliminated from the chain of distribution.
(ii)The table below shows the trends in inflation rates of country x.
Year--------Inflation rates.
2007---------15%
2008---------22%
2009---------40%
Explain five possible factors that may have contributed to the above trend.

  

Answers


Seline
(i)When demand for products is high.
When value of goods is high.
When goods are produced on order.
When serving a small market.
When dealing with small quantities of products.
If goods are perishable.
Where cost of production is high.

(ii)Increased cost of inputs for example raw materials.
High interest rates on loans which leads to higher prices of goods.
Increase in the amount of money supply which increases demand of a commodity than supply.
Increased credit facilities by commercial banks that increase the amount of money in circulation leading to excess demand that hikes prices of goods.
Increased population that exceeds the supply of commodities.
Scarcity of factors of production that hike their prices leading to high consumer prices.
Poor infrastructure that hinders the movement of goods thus causing shortages hence high prices.
High prices of imports that are transferred to high prices of consumers goods.
Increased government taxes on consumer commodities which are passed over in terms of high prices for commodities.
Belan answered the question on March 1, 2019 at 13:30


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