(a) What is elasticity of demand? [2 marks] (b) Explain each of the following terms

Explanation

(a) Meaning of elasticity of demand: This is the degree of responsiveness of demand to changes in price.

(b) Explanation of the terms as used in agricultural production:

(i) Collateral: This is anything of value offered as a promise of loan repayment to be given to a lender in case of non-payment.

(ii) Farm inventory record: This is a detailed list of all assets or materials on the farm including their money worth within a particular time.

(c) Merits and demerits of the retailer in the marketing of agricultural produce

Merits:

- They give credit to consumers

- Retailing provides job for many people

- They make goods readily available to consumers/repacking in small quantities

- They relay information from consumers to wholesalers

Demerits:

- They may suffer losses due to perishability of agricultural produce.

- They can create artificial scarcity of farm produce.

- They have little to offer for sale.

- They can inflate prices of farm produce.

- They may suffer losses due to pilfering by consumers.

(d) Roles of hormones in animal reproduction:

(i) Testosterone:

- Promotes sperm production.

- Stimulates the development of male secondary sexual characteristics.

- Regulates libido in male animals.

- Promotes the growth and development of accessory sex glands (e.g Cowper's gland).

- Prolongs the life of sperms in the epididymis.

(ii) Progesterone:

- Ensures the development of the uterus and implantation of the fertilized ovum.

- Inhibits oestrus during gestation and lactation.

- Sustains gestation/maintains pregnancy.

- Causes the development of alveoli in mammary gland.

(e) Ways of preserving fish:

- Salting

- Drying

- Freezing/refrigerating

- Frying -Smoking

- Canning

- Irradiation.