2016_PROMO_H2_CASE STUDY_question paper

1 ©ACJC2016 JC1 Promotional Exam H2 EC9757/01 [Turn over ANGLO-CHINESE JUNIOR COLLEGE 2016 JC1 PROMOTIONAL EXAMINATIONS ECONOMICS 9757/01 Higher 2 Paper 1: Case Study 29 September 2016 1 hour 10 minutes Additional materials: Writing paper READ THESE INSTRUCTIONS FIRST Write your index number and name on all the answer scripts you hand in. Write in dark blue or black pen on both sides of the paper. You may use a soft pencil for any diagrams, graphs or rough working. Do not use staples, paper clips, highlighters, glue or correction fluid/tape. The number of marks is given in brackets [ ] at the end of each question or part question. At the end of the examination, arrange your answers in order. Fasten the cover sheet on top of all your answers. Please check that your question paper is complete. The document consists of 4 printed pages (including this page).

2 ©ACJC2016 JC1 Promotional Exam H2 EC9757/01 Question 1: Figure 1: Market Share of Brick and Mortar Supermarkets in Singapore Source: Euromonitor, DBS Bank Extract 1: Supermarket tills are ringing and jingling People here are spending more than ever at supermarkets, despite a weaker economic climate and rising competition from online grocers. According to preliminary government figures, purchases from brick-and-mortar supermarket stores hit $2.3 billion last year; nearly double the $1.2 billion in 2005. This is the highest spending in a decade, which experts say may be due to higher costs of goods, an increased willingness to spend on quality and a rising interest in h ome cooking. Many supermarkets reported positive sales in physical stores, which seem unaffected by online competition. Even if prices go up, groceries are something people cannot live without. D emand remains stable despite ups and downs in the economic c ycle, compared to items like jewellery and recreational goods. Online grocers are also cashing in, with RedMart sales doubling every six months and SimplyFresh sales increasing by 15 per cent every month, according to their spokesmen. The increasing numb er of online grocers has also spurred supermarkets to develop their online platforms to stay competitive, offering greater varieties of items and more exclusive brands. All supermarkets here already offer online purchase and delivery services, with FairPrice citing 20 per cent growth each year for its online platform since it started in 2002. It added that it also plans to double the number of products available online. People are choosing to dine at home as eating out becomes more expensive. Cooking shows on TV and social media are also increasing in popularity, which has encouraged more home cooks. Source: The Straits Times, 1 May 2016

3 ©ACJC2016 JC1 Promotional Exam H2 EC9757/01 [Turn over Extract 2: Competition heats up from online retailers Although there is opportunity for yet more growth in the onli