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Date: Thursday, 29 February 2024, 2:43 PM

COECA1-11 Assessments (2024)

Assignment Instructions
 Description

Faculty: Commerce and Law

Module Code: COECA1

Module Name: Economics 1A

Content Writer: Manelisi Sambo

Internal Moderation: Munyaradzi Ziso

Copy Editor: Ingrid Viljoen

Total Marks: 100

Submission Week: Week 6

This module is presented on NQF level 5.

5% will be deducted from the student’s assignment mark for each calendar day the assignment is submitted
late, up to a maximum of three calendar days. The penalty will be based on the official campus submission
date.

Assignments submitted later than three calendar days after the deadline or not submitted will get 0%.

This is a group assignment. Groups should consist out of 3 - 5 members.

This assignment contributes 20% towards the final mark.

1. Instructions to Students

1. Please ensure that your answer file (where applicable) is named as follows before submission: Module
Code – Assessment Type – Campus Name – Student Number.
2. Remember to keep a copy of all submitted assignments.
 3. All work must be typed.
4. Please note that you will be evaluated on your writing skills in all your assignments.
5. All work must be submitted through Turnitin. The full originality report will be automatically generated
and available for the lecturer to assess. Negative marking will be applied if you are found guilty of
plagiarism, poor writing skills, or if you have applied incorrect or insufficient referencing. (See the
“Assignment/Project Instructions” book activity before this activity where the application of negative
marking is explained.)
6. You are not allowed to offer your work for sale or to purchase the work of other students. This includes
the use of professional assignment writers and websites, such as Essay Box. You are also not allowed
to make use of artificial intelligence tools, such as ChatGPT, to create content and submit it as your own
work. If this should happen, Eduvos reserves the right not to accept future submissions from you.
7. One group member should be nominated to submit the assessment on behalf of the group. Multiple
submissions by various group members will result in an inflated similarity index on Turnitin.

2. Section A

Section A

Learning Objective

This assignment tests the theoretical and practical aspects of the module and your ability to use the Harvard
Referencing method.

Scope

LOs 1, 3 and 4

Marking Criteria

Plagiarism is a very serious matter and if any part of your assignment is found to be plagiarised you risk a
zero grade.
2.1. Question 1

Question 1 25 Marks

Define the Production Possibilities Frontier (PPF) and explain how it relates to opportunity cost, use a graph
and example to support your answer. What are the factors that can shift the PPF and how do these shifts
affect the overall economy? Additionally, how do you define an efficient allocation of resources within the
context of the PPF?

(25 Marks)

End of Question 1

2.2. Question 2

Question 2 25 Marks

Study the scenario and complete the question that follows:

Different economic systems

A system is a network of parts that interlock to form an overall pattern. Examples include the nervous
system of the human body, the solar system, the transport system of a country, and its political system. An
economic system is a pattern of organisation which is aimed at solving the three central economic
questions. Economic systems do not always work well, but they are often so vast and complicated that it is
quite marvellous that they work at all.
Adapted from: Mohr, P. 2015. Economics for South African students. 5th edition. Pretoria: Van Schaik.

Write a report about the four main types of economic systems: the traditional system, the command system,
the market system, and the mixed economic system.

The following guidelines should be adhered to when writing your report:

The report should consist of between 1 500 and 2 000 words.

A word count should be provided at the end of the report.
The report should have both an introduction and a conclusion.
All four of the economic systems should be discussed with respect to their functioning, origin, and
future.
Current real-life examples should be provided for all four economic systems.
Make use of headings and sub-headings to ensure a logical discussion.
Suitable economics subject terminology (language) should be used.
All facts that are not common knowledge should be referenced using the Harvard method (in-text
references used in the report should be included in the bibliography of this assignment).

End of Question 2

2.3. Question 3

Question 3 25 Marks

Study the scenario and complete the questions that follow:

XYZ TECH DECIDES TO DISCONTINUE FLAGSHIP SMARTPHONES

After years of popularity, tech enthusiasts were dismayed to learn that XYZ Tech has decided to discontinue
flagship smartphone model, the XYZ Pro. The company cited declining demand and a significant decrease in
sales as the primary reasons for this decision. Fans of the XYZ Pro took to online forums to express their
disappointment and reminisce about their favorite features of the beloved device. In response to the
discontinuation of the XYZ Pro smartphone, users on online forums and communities started discussing a
potential substitute for the product. One popular substitute is the OLX elite smartphone which shares similar
features and functionalities with the XYZ Pro.
Source: Sambo (M,2024).

3.1. How does a recent decrease in the price of OLX elite smartphones, a substitute for the XYZ Pro
smartphones, impact the equilibrium price and quantity in the market for flagship smartphones? Graphically
illustrate and explain. (10) Marks)

3.2 Using demand and supply analysis, illustrate (draw a fully labelled graph) and explain the impact of a
decrease in the supply resulting from a global shortage of batteries (battery is a key component/input of
flagship smartphones) on the equilibrium price and quantity in the market for. Flagship smartphones

(10 Marks)

3.3. Explain the impact of a decrease in consumer income on the equilibrium price and quantity in the market
for flagship smartphones, using demand and supply analysis. Provide a graphical illustration to support your
explanation. (5 Marks)

(25 Marks)

End of Question 3

2.4. Question 4

Question 4 25 Marks
Study the scenario and complete the questions that follow:

The Fizzy Fanatic

David is a devoted fan of Coca-Cola, particularly the 2-liter bottles. He has a keen interest in tracking how
his purchasing decisions are influenced by changes in price and his income level. Below are tables
illustrating the number of 2-liter bottles David will buy based on varying prices and income levels.

Table 1: Number of Fizzy Drinks vs Price

2L Bottle price Number of 2L Bottles bought.

R15 20

R20 11

Table 2: Number of Fizzy Drinks Bought vs. Income Level.

Income Level Number of 2L Bottles bought.

R 10 000 20

R 12 000 28

David is an avid fan of live performances and often travels out of town to attend concerts, theatre shows,
and sporting events. He enjoys the thrill of experiencing live entertainment and is interested in
understanding how changes in the price of fuel affect his travel behaviour. Table 3 indicates David’s price
and income elasticities coefficients for demand for fuel over both the long – and short-run.

Table 3: Price and Income Elasticity coefficients of fuel

Price elasticity Income elasticity

Short run 0.66 0.33

Long run 0.75 1.50

Source: Haasbroek, J. (2023)

4.1 Use Table 1 to calculate and interpret David’s price elasticity of demand for Coca-Cola as the price
increases from R15 to R20. Show all formulas and calculations.

4.2 Use Table 2 to calculate and interpret David’s income elasticity of demand for Coke as his income
increases from R10 000 to R12 000 if the price of a 2l Bottle is set at R15. Show all formulas and
calculations.

4.3 Do you expect the cross elasticity of demand between Coca-Cola0 and a Hamburger to be positive or
negative? Substantiate your answer by using elasticity concepts. (25 Marks)

4.4 Analyse the elasticity coefficients provided in Table 3.

End of Question 4