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Econ Sba Draft

1) The document analyzes the impact of increasing petrol prices on taxi operators in Goshen, Jamaica. 2) It finds that petrol prices have increased over time, rising from $129.1 to $130.2 between early and late November 2020. 3) Increased petrol prices negatively affect taxi operators by decreasing profits and income, forcing lifestyle changes like driving less or slower, and potentially impacting their ability to continue working as taxi drivers.

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J J
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2K views

Econ Sba Draft

1) The document analyzes the impact of increasing petrol prices on taxi operators in Goshen, Jamaica. 2) It finds that petrol prices have increased over time, rising from $129.1 to $130.2 between early and late November 2020. 3) Increased petrol prices negatively affect taxi operators by decreasing profits and income, forcing lifestyle changes like driving less or slower, and potentially impacting their ability to continue working as taxi drivers.

Uploaded by

J J
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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My Economics School Based Assessment:

Name: Jason Williams and Leon Golding


Subject: Economics SBA
Date: September 28,2020
Teacher: Mrs. Mullings
Table Of Contents
An investigation into the impact of increasing petrol prices in taxi operators in the community of
Goshen.

The following objectives will be used to guide this research so pertinent conclusions can be
drawn.
1. To compare previous gas prices to the current gas prices to determine if there is an
increase in gas prices.
2. To discover the extent of impact of the rise in petrol prices on taxi operators.
3. To determine the inelasticity of demand for petrol by taxi operators.
Background:
Majority of persons in Goshen are taxi operators and rely on this profession for their livelihood.
On the news however, each week petrol prices fluctuate (give price for last week vs this week).
Taxi operators depend on gas as the main raw material to get their job done. The increase in gas
prices may impact their ability to carry out their job negatively.
This research will examine the extent to which increase in gas prices will affect taxi operators.
When taxi drivers are impacted negatively, community members will be impacted negatively as
well and may lead to increase in crime for those who cannot afford the rise in petrol prices.

As we continued our research into the effect of increased petrol prices on taxi drivers, this group
decided to collect data to aid in reaching a conclusion. The area of Goshen, St.Elizabeth was the
area of study. Both quantitative and qualitative research were done using primary and secondary
sources. It was agreed that a questionnaire allows for a wider net to be cast to attain usable
information on this topic.
A total of --- questionnaires were distributed in the community of Goshen, St.Elizabeth on--------
and collected on----------. The individuals selected were chosen randomly. The questions were
closed ended. This information was then tallied, recorded and analyzed. Questions asked
included the age of the individual, whether or not they are taxi operators, if gas prices have
increased, whether or not the increase has affected them and if so, to what extent the increase
affected them. Secondary sources included online documents, newspapers and books.
Limitations were social distancing, ability of persons to respond to the questionnaires and
uncooperative citizens.

Econ SBA Questionnaire:


1. What age group do you belong to?
A. 18-25
B. 26-35
C. 36-45
D. 46-55
E. 56-65
F. 66-75
2. Are you a taxi operator?
A. Yes
B. No
3. What are the gas prices like?
A. Good
B. Not So Good
C. Bad
D. Awful
4. Have gas prices increased?
A. Yes
B. No
5. Has the increase affected you in your capacity as a taxi-driver?
A. Yes
B. No
6. How has the increase affected you in your profession as taxi driver?
A. It's difficult to continue
B. I manage
C. I'm doing great
D. It would be better if prices were lower.

Presentation of Data:
As we begin to analyze the data regarding gas prices in the month of November, we must
determine whether or not an increase is present.
On the 9th of November 2020, gas prices stood at $129.1, however, on the 30th, prices were up
to $130.2. Though these figures may seem inconsequential as they are, for a taxi driver who may
have to purchase petrol every day or every two days, that increase could possibly be the
difference between profit and loss.

As seen in the diagram, taken from the Jamaica Information Service, the latest recorded gas
prices to date have shown a gradual incline, which therefore brings us to conclude that an
increase in gas prices is indeed present.

There are numerous effects that this increase can possibly have on taxi operators as well as the
economy.
- Increased petrol prices can definitely affect driving behaviour. As reported by the
congress of the United States, when prices increase, traffic congestion and driving speeds
decrease. This is due to persons making an effort to save money by driving less and
driving at slower speeds in an effort to conserve.
- As stated by the Gleaner, "Hybrids and diesels offer superior fuel economy but are more
expensive." It is more difficult for taxi operators to survive rises in petrol prices when
their vehicles are not fuel efficient. This therefore results in a much larger decline in
profit.
- Gas prices also cause a decrease in income as additional money has to be spent on petrol.
These are but a few effects that increased gas prices have on taxi operators as there are
others such as illness cause by lack of funds to go to a certified doctor, loss of family
members, increased debt from loans, and the list continues.

Secondly, it is important to determine if there is inelasticity of demand in terms of gas prices.


The Office of Utilities Regulations reports that for public transportation, price inelasticity is
present as a change in price is not followed to a large extent by a change in demand.
As seen in the questionnaire, while a change in prices led to a decrease in profits, gas was still a
necessity and was still purchased by taxi operators. This shows that petrol is inelastic in relation
to taxi operators.

Conclusion:

We have discovered a definite increase in petrol prices over to date and we have brought forth
numerous effects this increase has on local taxi operators. This good, based on questionnaires
and secondary data, is inelastic as the price does not affect purchase to a large extent.

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