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 Caribbean-
type 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.
