Professional Documents
Culture Documents
Level: Semester 5
Lecturer:
Date: 30th of June 30, 2014
RESEARCHERS:
Yadi Ikechukwu ANU12210098
Nkamare Michael ANU12210094
John Dah
Becky
Beatrice
BACKGROUND
Inflation is persistent increase in prices of goods and services. It can
also be explained as the situation where a unit of currency is able to
purchase fewer goods.
There are many drivers of inflation. Good examples include - higher
taxes, printing of more currency, increase in wages, increasing
import prices
By 10 June 2014, there is going to be an increase in the prices of
water, electricity and gas.
Historically, an increase in gas prices has led to a level of price
increments in transportation, food prices among (Heinberg, 2011).
Electricity is a vital part of the economy. Without it, perishable food
items like chicken, eggs, meat would quickly get spoiled. Water
and soft drinks are normally served cold and thus require almost
constant refrigeration to please the customer.
Water is very vital to life. Water is used to bathe, cook, wash and
drink.
STATEMENT OF PROBLEM
Ordinarily, an increment in the prices of one of the three items i.e.
water, electricity and gas would cause a noticeable change in prices
of other goods. With the three factors being increased at the same
time, it is possible that the effect could be greater than if they were
increased separately.
OBJECTIVES
We would seek to discover the immediate effect of the price
increases. We would want to discover if the three price hikes done
at the same time would be less than if they were increased
separately.
RESEARCH QUESTIONS
DELIMITATION
We would be restricting the research to just the effect of the price
increment on the prices of transportation and food. We also would
be limiting the research to questionnaires and personal
observations.
We also would not concern ourselves with the macro-economic
effect on output.
RESEARCH METHODOLOGY
We would be making use of both primary and secondary data.
For the resultant price increase, we would be making use of
surveys, observation and market inspection of prices.
For the comparison and analysis, we would be making use of
historical data of the effect of the individual items (electricity, gas
and water) on the prices of transportation and food.