Step 1: Define the term market. a) A market* in Economics is a place or system where buyers and sellers interact to exchange goods, services, or resources. This interaction determines prices and quantities traded. Step 2: Analyze Table 2 for bread demand and supply. b) (i) If the government sets a guarantee price of 150 FCFA per packet of bread, the name given to such a price is a price floor or a support price. This is a minimum price set by the government, typically above the equilibrium price, to protect producers. b) (ii) Calculate the costs to the government if it imposes a price of 300 FCFA per packet of bread and decides to buy the excess in the market.* From Table 2, at a price of 300 FCFA: Quantity supplied = 400 packets Quantity demanded = 150 packets Excess supply = Quantity supplied - Quantity demanded $$ \text{Excess supply} = 400 - 150 = 250 \text{ packets} $$ Cost to the government = Excess supply $\times$ Price $$ \text{Cost to government} = 250 \text{ packets} \times 300 \text{ FCFA/packet} $$ $$ \text{Cost to government} = \boxed{75,000 \text{ FCFA}} $$ b) (iii) Calculate the price elasticity of demand if the price of bread falls from 250 FCFA to 200 FCFA per packet and identify whether it is elastic or inelastic.* Using the midpoint formula for Price Elasticity of Demand (PED): $$ PED = \frac{\frac{Q_2 - Q_1}{(Q_1 + Q_2)/2}}{\frac{P_2 - P_1}{(P_1 + P_2)/2}} $$ From Table 2: At $P_1 = 250$ FCFA, $Q_1 = 300$ packets. At $P_2 = 200$ FCFA, $Q_2 = 450$ packets. Change in Quantity ($\Delta Q$) = $450 - 300 = 150$ Change in Price ($\Delta P$) = $200 - 250 = -50$ Average Quantity = $(300 + 450) / 2 = 750 / 2 = 375$ Average Price = $(250 + 200) / 2 = 450 / 2 = 225$ $$ PED = \frac{\frac{150}{375}}{\frac{-50}{225}} $$ $$ PED = \frac{0.4}{-0.2222...} $$ $$ PED \approx -1.8 $$ The absolute value of PED is $|-1.8| = 1.8$. Since $1.8 > 1$, the demand is elastic. The final answer is $\boxed{\text{PED} \approx -1.8 \text{ (elastic)}}$ Step 3: State and explain three factors which affect elasticity of supply. c) (i) Time Period: In the short run, supply tends to be inelastic because firms have limited ability to change their production capacity. In the long run*, firms can adjust all factors of production, making supply more elastic. c) (ii) Availability of Inputs:* If the raw materials and other factors of production required to produce a good are readily available and easily acquired, supply will be more elastic. If inputs are scarce or specialized, supply will be inelastic. c) (iii) Production Capacity/Spare Capacity:* If a firm has significant spare capacity, it can easily increase output in response to a price rise, making supply more elastic. If it is operating at full capacity, supply will be inelastic. Step 4: Outline three functions of the retailer in the channel of distribution. d) (i) Breaking Bulk:* Retailers purchase goods in large quantities from wholesalers or manufacturers and then sell them in smaller, more convenient units to individual consumers. d) (ii) Providing Variety:* Retail