Conduct research on the prices of coffee and tea.

1.1 Pick a food/drink you enjoy and record the utils you would give for each repetitive helping of
that food item in one sitting.
1.2 Create a table and then plot a graph to show the total plus marginal utils for your product.
1.2.1 Table (5)
1.2.2 Graph (5)
Conduct research on the prices of coffee and tea. Use your research to discuss the following:
2.1.1 The absolute price of coffee. (1)
2.1.2 The absolute price of tea. (Use number of servings to compare). (1)
2.1.3 The relative price of coffee and tea in terms of percentage. (2)
2.1.4 The nature of the demand relationship between coffee and tea. (2)
2.1.5 The graphical illustration of the effect of an increase in the price of coffee
on the demand for tea. (4)
Conduct research on SAA. Use your research to discuss the following:
3.1.1 The market structure. (4)
3.1.2 The reasons why SAA has this market structure. (4)
3.1.3 The effect of this market structure on consumers. (4)
3.1.4 The type of profit made by SAA. (2)
3.1.5 A graphical representation of the effect on a business’s profit maximisation, using
Average Revenue and Average Cost curves, when SAA increases the price it charges for
domestic trips. (4)
3.1.6 Attach a recent newspaper article about problems experienced by SAA

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