Answer to Question #135668 in Economics for juan jose

Question

Question 2
The National electricity supplier in South Africa (Eskom) has applied for a 16% price hike over five years to the National Energy Regulator of South Africa (NERSA) which will see them not requesting for any increase in electricity tariffs up to 2018.
2.1 Use the AD-AS analysis to evaluate the type of inflation and its resulting effect on production, income and employment since the above application by Eskom was approved by NERSA. What course of actions, do you think NERSA should take based on the effects discussed above?
(45 marks)

Answer 1

Dear juan jose , your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order