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Question 2


Factors that can affect the supply curve
of raw water to shift

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1994 the new democratic government took over in South Africa, the international
countries lifted the suctions which were exposed because of the apartheid.
These change the economic status of the country.

following are some of the factors which caused the change in Supply to shift.

Climate Changes

According to Vollgraaf
& Mbatha (2016) South Africa in 2015/2016 experienced its worse drought in
100 years. The agricultural and manufacture output dropped  drastically. The drought decreases the supply
of agricultural products. This caused the supply curve to shift to the left.

New Technology

South African
government invested money on innovation hub. A number of student were sent in
other countries such as China and Cuba to enquire new skills and technology for
improving the economy of the country. Industries also invested in new
technology. Example the courier service companies are using the GPS to locate
the 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 supply
curve to shift to the right.

Government Policies:

South Africa passed
some legislation and policies from 1999 with the aim of controlling consumption
and make revenue (Abedian and Jacobs :2001). One of the policy was to increase
from 0.12 cent per cigarette to 0.38c in 2009/10. The goal of policy was to
reduce 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 of
raw water to shift

Change in Taste and

The consumption of
poultry meat in South Africa increased by almost 80% from 21.5 kg per person
per year in 2000 to 80.5 kg per person per year in 2014. As chicken is
relatively expensive and generally available in most places, it grows to be
most important protein source in the diet of majority of South Africans (Burgin
2015). This resulted to steady economic growth and increase in average income
levels of South Africans since 2000. This cause the rightward shift of the
demand curve.



According to the World Bank (2015), since 1994 in South
Africa the working age population has grown by 11 million and comprises 65% population
of 54.9 million in 2015. Therefore, more people in employment mean more
production, more income and more spending. This expansion of South Africa’s
workplace presents the country with a demographic window of opportunity for
increase economic growth and better living standard (World Bank:2015). Because
of the increase in population the demand curve will shift to the right.

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