this is an authentic task that will enable learners to apply the dynamics of markets theory into real life. they get to calculate, observe and draw conclusions

1. Xolani thembi Sibeko
.

2. Portfolio task
Topic: dynamics of markets (price elasticity)
Marks: 50
Instructions and information
 Group your selves into groups of four and each member must do one of the
tasks and after completing the task he/she must communicate hi/her
responses to fellow group members before submitting
 answer all questions
 write neatly and legibly
 Show all calculations where you are required to calculate.
 Provide evidence of where you got your
 Submit all your tasks on due dates given. NB there will be deduction of marks
for late submtions.
Task Due date
Week 1 Collection of data from
different sources
09 October
Week 2 Elasticity calculations
from the DATA
collected
16 October
Week 3 Critical analysis of the
data collected and
suggestions.
23 October
Week 4 Interviewing people
who run each of the two
supermarkets
30 October

3. Task1
In the first task of your portfolio you are required to go and find out about the prices
of milk (1 litre sachet), eggs and a small tin of fish from different 2 supermarkets or
spaza shops around your area that are situated closely to each other. You must find
prices and sales volumes of the past 3 months of the above mentioned products. In
the DATA collected write out the following:
1.1State whether the prices have been rising or dropping in those supermarkets
for that 3 months period.
1.2Indicate on how it has affected their volume of sales in terms of the units sold
in each of the above mentioned products.
1.3 present the sales DATA of each super market on a graph using Microsoft
word document. Use colour coding and allocate a colour for each super market
Marks: 10
Task 2
Calculate the following (Show all your calculations and indicate the formulas
that you will use):
2.1 calculate the price elasticity of demand in milk over the past three months for
both the supermarkets.
2.2 draw the price elasticity demand for milk diagrams for both the supermarkets
2.3 calculate the cross elasticity between milk and fish in both the supermarkets,
based on your findings state the relationship between milk and fish.
2.4 calculate the cross elasticity between the eggs sold by both supermarkets. After
your findings would it be correct if one says the eggs sold in both supermarkets are
substitutes to each other?

4. Marks: 20
Task 3
Now that you have full information about the prices and the sales volumes of the
different supermarkets. Look at following:
3.1 Which super market sells the most units in : tin of fish
Milk (1 litre sachet)
Eggs
Also come up with possible reasons from the collected information as what you
think the reason is for them to sell more units of the products.
3.2From your own perspective which supermarket should change its pricing
strategy?
3.3 Post the question asked In 3.2 on a facebook page where your fellow
classmates will also comment on pricing patterns of each supermarket NB.
When you post include all the DATA that you have collected so that they may
look at it before commenting.
Marks: 5
Task 4
You are required to arrange interviews with people who run each of the
supermarkets. In your interview you are to ask the following questions:
 What influences your price adjustments?
 Before adjusting prices do start by checking how your customers feel
about it?
 When setting prices do check prices that your competitor charges.
 With the way in which you have been adjusting prices do you gain or
lose customers. ?
 If the past three months were to be reversed what would you do
differently in terms of pricing?

5. N.B record your interviews as part of proof that those interviews were
done.
Marks: 15