Statistics South Africa published the following data on urban food price trends for selected wheat products for the period April 2015 to April 2016 - NSC Mathematical Literacy - Question 2 - 2017 - Paper 2

To determine Q, we analyze the average price change for white bread (700 g) from January 2016 to April 2016. The percentage change is calculated as:

$Q = \frac{Price (April 2016) - Price (January 2016)}{Price (January 2016)} \times 100$

Substituting the values, we find:

$Q = \frac{11.23 - 11.20}{11.20} \times 100 = 0.27\%$

To compute E, we take the average price increases of all products. The formula for E is:

$E = \frac{12.10 + 12.12 + 12.22 + 6.34 + 6.75 + 11.10 + 8.60 + 10.87}{8}$

Calculating gives us:

$E = \frac{69.08}{8} = 8.635 \text{ (approx.)}$

From April 2015 to January 2016, the price of white bread (600 g) showed an increasing trend, where it rose from 11.10 to 11.20. From January 2016 to April 2016, the price remained constant at 11.23 for the 700 g loaf, indicating stability in pricing during this period.

This suggests that while the price of the smaller loaf increased slightly, the larger loaf's price remained stable, pointing to potential market adjustments in response to demand.

Mr. Mkhize's absence of a salary increase, coupled with rising wheat prices, means he will need to allocate more of his fixed income towards staple items like bread. This could reduce his disposable income, affecting his ability to purchase other necessities.

Financial strain may force him to adjust his spending, potentially looking for cheaper alternatives or reducing quantities purchased. Ultimately, this could lead to less nutritional food choices and a lower quality of life for his household.

To project the price, we apply the average inflation rate:

Starting price for brown bread (April 2016) = 6.72 R

First, calculate the price for 2017 using the 2016 inflation:

$2017 = 6.72 \times (1 + 0.066) = 6.72 \times 1.066 = 7.16 R$

Now apply the 6% projected inflation for 2018:

$2018 = 7.16 \times (1 + 0.06) = 7.16 \times 1.06 = 7.59 R$

Thus, the projected price for April 2018 is approximately 7.59 R.