Econ IA

CAPE Unit 1 Economics Internal Assessment

Name:

Thalia Treasure

Candidate’s Number: 100108 School:

St. Andrew High School for Girls

Centre Number:

100108

Territory:

Jamaica

Year of Examination: 2014

Module 1:

The effect of Grace Kennedy Company Limited on the Jamaican economy through the sales of Grace Tropical Rythms DRINKS 4.29oz.’

TABLE OF CONTENTS

Acknowledgment Introduction Aims and Objectives

Methodology Report Conclusion and Judgment Suggestions and Recommendation Appendix Reference

ACKNOWLEDGMENT

I cannot express enough thanks to my neighbours for their continued support and encouragement: Mark Evans, Leona Wright, Brittney Green and Pia Carter. I offer my sincere appreciation for the helping resources provided by them. My completion of this project could not have been accomplished without the support of my classmates: Shanice, Tori, Kimberly and Ashley. Thanks to their assistance and opinions towards the success of this assessment. To my

teacher Ms. Thompson who took time to ensure that the project was done in the correct manner aiding my classmates and I through the whole research process. Finally, my deepest gratitude to the Almighty God, my parents, brothers and sisters, for their constant encouragement without which this assignment would not be possible. Their encouragements were greatly appreciated when the times got rough.

AIMS AND OBJECTIVES Aims 

Examine the factors that that affect demand of Grace Tropical Rhythm.



Develop an appreciation of the various methods used by economists in analyzing economic problems.



To apply economic theory to the critical issues which affect the small open Caribbeantype economy.

Objectives Module 1 Topic 2: Consumer Demand 

To explain effective demand



To identify the factors that affect demand;



To explain price elasticity, income elasticity and cross elasticity of demand



To differentiate between normal, inferior and giffen goods;

Module 2 Topic 1: Market Structure 

Outline the goals of the firm



Explain the concept of market structure

Justification

INTRODUCTION This research was done to satisfy the requirement of the Caribbean Examination Council (CXC) for the Caribbean Advanced Proficiency Examination (CAPE) for an Internal Assessment (IA). This investigation will help the researcher to revise economic principles learnt as well as to apply these principles to a current topic which is relevant to Jamaica.

The topic chosen concerns the effects of Grace Kennedy Company Limited on the Jamaican economy through the sales of its Tropical Rhythm juice line. This research will

examine

whether the sales of Grace Tropical Rhythms meets the consumer satisfaction of the Jamaican economy. Grace Kennedy Company Limited is the oldest and largest distributors of consumer products in Jamaica. Grace Tropical Rhythms is one of the company’s most popular lines. Grace Tropical Rhythm is a delicious range of exotic Caribbean Fruit and/or Vegetable blends. The ingredients are specially formulated to capture and maintain their natural flavours.

Product: Lime $100 phone card According to Graham Bannock 1998, elasticity is the proportionate change in a dependent variable of a function, divided by the proportionate change in an independent variable at a given value of the independent variable. It is a measure of the sensitivity of one thing, such as demand for a commodity to another. The types of elasticity that exists are: price elasticity, income elasticity, cross-price elasticity. However, the specific elasticity pertaining to my good (Lime $100 phone card) is income elasticity. This indicates the responsiveness of consumer purchase to a change in income. It is measured by the percentage change in the quantity demanded of the

product divided by the percentage change income. It is positive for normal goods and negative for inferior goods. For my good (Lime $100 phone card), the factors that affects it are: government intervention, price, income, substitutes.