ASSIGNMENT QUESTIONS:
SECTION 1
the aggregate demand of flue relatedQuestion 1 medicines during the Covid-19 period caused a rise in their prices.
1.2 Kellogg’s sells cornflakes at R50 for a 1 kg pack. What is the effect on supply and demand if the price of milk falls?
1.3 You have been approached to be part of the SARB team responsible for putting in place measures that can combat inflation. Outline five (5) measures (10) of your advice.
1.4 SASOL is a dominant force in the chemical and energy industry in South Africa. Determine the market structure that resembles SASOL and explain how they can compete in the identified market.
1.5 With the aid of practical examples, explain the conditions under which a business is able to engage in price discrimination.
SECTION 2: CASE STUDY
CASE STUDY: South Africa – Improving productivity and the efficiency of public spending to bolster living standardsBy Falilou Fall, OECD Economics Department, August 25, 2022South Africa needs bold structural reforms to lift economic growth. The coronavirus crisis, flooding in Kwa-Zulu Natal and widespread electricity cuts have weakened an already fragile economy (Figure 1). GDP growth is projected to slow to 1.8% and 1.3% in 2022 and 2023, respectively. The war in Ukraine is creating additional risks: on the one hand, rising commodity prices are prolonging the commodity boom cycle, but, on the other hand, higher inflation is denting purchasing power. The social distress relief grant, put in place during the pandemic and covering up to 10.5 million individuals, has helped mitigate the effects of the crisis and inflation on poverty, but may not be sufficient if the economy does not grow faster: unemployment stood at 34.5% in the first quarter of 2022. The repo rate changes continue to affect the economy in different ways.Figure 1. Electricity availability has fallen dramaticallyYearly hours of load shedding by stages and total annual supply in TWh.
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