Podcast
Questions and Answers
Which of the following best describes the Consumer Affairs Commission's (CAC) primary objective?
Which of the following best describes the Consumer Affairs Commission's (CAC) primary objective?
- Setting the prices of grocery items.
- Promoting and protecting the interests of Jamaican consumers. (correct)
- Supporting local business producers.
- Regulating supermarket operations.
What is one method the Consumer Affairs Commission (CAC) uses to achieve its objectives?
What is one method the Consumer Affairs Commission (CAC) uses to achieve its objectives?
- Enforcing price controls on supermarkets.
- Providing financial assistance to consumers.
- Conducting regular grocery surveys. (correct)
- Lobbying the government.
In which area was Shopper's Fair supermarket found to have the lowest prices?
In which area was Shopper's Fair supermarket found to have the lowest prices?
- Ocho Rios.
- Mandeville.
- Duhaney Park. (correct)
- Montego Bay.
According to the information, which items have seen significant price increases at Shopper's Fair?
According to the information, which items have seen significant price increases at Shopper's Fair?
Which of the following factors is identified as a reason for businesses needing to pass on costs to consumers?
Which of the following factors is identified as a reason for businesses needing to pass on costs to consumers?
What is one reason some supermarket retailers are threatening to close down?
What is one reason some supermarket retailers are threatening to close down?
What is a criticism supermarket retailers are making against the CAC grocery price survey?
What is a criticism supermarket retailers are making against the CAC grocery price survey?
According to the Minister of Industry, Investment and Commerce, what is the intended effect of publishing grocery prices?
According to the Minister of Industry, Investment and Commerce, what is the intended effect of publishing grocery prices?
According to Table 1, what was the price of 'EGGS' in February 2012?
According to Table 1, what was the price of 'EGGS' in February 2012?
According to Table 1, what was the quantity demanded of 'EGGS' in March 2013?
According to Table 1, what was the quantity demanded of 'EGGS' in March 2013?
Flashcards
Price elasticity of demand
Price elasticity of demand
Responsiveness of quantity demanded to a change in price.
Positive cross-price elasticity
Positive cross-price elasticity
Goods related such that an increase in the price of one leads to an increase in demand for the other.
Income elasticity of demand
Income elasticity of demand
Responsiveness of quantity demanded to a change in income.
Price floor
Price floor
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Consumer surplus
Consumer surplus
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Producer surplus
Producer surplus
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Price elasticity of supply
Price elasticity of supply
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Study Notes
- The Consumer Affairs Commission (CAC) conducts surveys to protect Jamaican consumer interests.
- A recent survey found that prices of various goods have increased significantly over the past year.
- Shopper's Fair supermarket in Duhaney Park had the lowest prices among 12 Corporate Area supermarkets surveyed.
- Despite this, the prices of eggs and margarine (227g) have increased significantly at this location.
Market Information for Eggs and Margarine
- February 2012:
- Eggs: $200 per dozen, 1100 dozen demanded
- Margarine: $190 each, 800 units supplied
- March 2013:
- Eggs: $235 per dozen, 750 dozen demanded
- Margarine: $220 each, 1200 units supplied
- Mrs. Johnson prefers Shopper’s Fair because it is the "poor man's supermarket”.
- The Jamaica Manufacturers' Association (JMA) president urges consumers not to blame local producers.
- Businesses are trying to contain prices and be efficient, but electricity and raw material costs are passed to consumers.
- Some supermarket retailers are threatening to close, because they cannot compete, and complained the CAC survey is flawed.
- The Minister of industry stated that publishing grocery prices will continue to pressure retailers for the best prices.
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