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ESC1601 assignment 5 2023

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Question 3 (Word count = 200 ) Economic effects Inflation Rising fuel and transport costs cause inflationary pressure. Higher costs are passed on to consumers in the form of higher prices for goods and services. Consumer spending Higher transport and fuel costs reduce consumers' disposable income, potentially leading to lower spending and dampening economic growth. Production costs Increased fuel prices raise production costs for businesses that rely on transportation, which may result in lower profits or higher prices for consumers. Income distribution Fuel price hikes disproportionately affect lower-income households, as they spend larger share of their income on transport. Steps to address economic effects.

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ECS1601
assignment 5
2023

, lOMoARcPSD|18324521




ECS1601 Assignment 05 Semester 01 2023

Student number: 10530533

………………………………………………………………………………………………..

Name(s) and Surname: Hlanganiphani Charmaine Ndlovu

…………………………………………………………………………………………………

Date submitted: 11 May 2023

………………………………………………………………………………..

Word count: 390

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