This question was attempted by few candidates. The candidates were required to define a supply schedule, distinguish between increase in supply and decrease in supply with the use of appropriate diagrams and to explain any three determinants of supply in the (a), (b) and (c) parts of the question respectively. Most of the candidates were able to define a supply schedule correctly in the (a) part of the question, they were however unable to draw and label diagrams as required to illustrate the difference between increase in supply and decrease in supply in the (b) part of the question. The few candidates that were able to state the determinants of supply could not explain those points in the (c) part of the question. Candidates’ performance was poor in this question.

Candidates were expected to provide the following answer to score maximum marks in this question.

(a)   A supply schedule is a table showing the quantities of a product that sellers are willing to offer for sale at various prices at a particular time.     

(b)    An increase in supply is a situation in which at the existing price (P), more of a commodity is offered for sale. This is represented by a shift of the supply curve to the right from S0S0 to S1S1as shown in the diagram below.          

            A decrease in supply is a situation in which at the existing price (P), less of a commodity is offered for sale. This is represented by a shift of the supply curve to the left from S1S1 to S2S2
as shown in the diagram below.

(c)
(i)    The price of the commodity.
(ii)   Prices of other commodities.
(iii)  Government policy (taxes and subsidies).
(iv)  Level of technology.
(v)   Number of producers/sellers.
(vi)  Weather and climatic factors.
(vii) Expectation of future price changes.
(viii)Objective of the producer to maximize profit or secure a larger share of the market e.g. monopolist.
(ix)  Resource prices/ cost of production.
(x) Pests and diseases (agricultural products).
(xi)  Extent of demand.
(xii) Proportion of output consumed by the producer/seller.
(xiii)Discovery of new raw materials.
(xiv)Availability of storage facilities.