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 Question 2  Factors that can affect the supply curveof raw water to shiftIn1994 the new democratic government took over in South Africa, the internationalcountries lifted the suctions which were exposed because of the apartheid.These change the economic status of the country. Thefollowing are some of the factors which caused the change in Supply to shift.Climate ChangesAccording to Vollgraaf& Mbatha (2016) South Africa in 2015/2016 experienced its worse drought in100 years.

The agricultural and manufacture output dropped  drastically. The drought decreases the supplyof agricultural products. This caused the supply curve to shift to the left.New TechnologySouth Africangovernment invested money on innovation hub. A number of student were sent inother countries such as China and Cuba to enquire new skills and technology forimproving the economy of the country. Industries also invested in newtechnology. Example the courier service companies are using the GPS to locatethe address for delivery to save on time to go around searching for the address.

Because of the use of technology the output levels increase causing the supplycurve to shift to the right.Government Policies:South Africa passedsome legislation and policies from 1999 with the aim of controlling consumptionand make revenue (Abedian and Jacobs :2001). One of the policy was to increasefrom 0.12 cent per cigarette to 0.38c in 2009/10. The goal of policy was toreduce the cigarette consumption and prevent the negative impact caused by it.The supply curve shifted to the left because of the low supply of the cigarettes.

Factors that can affect the demand curve ofraw water to shiftChange in Taste andPreferences The consumption ofpoultry meat in South Africa increased by almost 80% from 21.5 kg per personper year in 2000 to 80.5 kg per person per year in 2014.

As chicken isrelatively expensive and generally available in most places, it grows to bemost important protein source in the diet of majority of South Africans (Burgin2015). This resulted to steady economic growth and increase in average incomelevels of South Africans since 2000. This cause the rightward shift of thedemand curve. PopulationAccording to the World Bank (2015), since 1994 in SouthAfrica the working age population has grown by 11 million and comprises 65% populationof 54.

9 million in 2015. Therefore, more people in employment mean moreproduction, more income and more spending. This expansion of South Africa’sworkplace presents the country with a demographic window of opportunity forincrease economic growth and better living standard (World Bank:2015). Becauseof the increase in population the demand curve will shift to the right.

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