A. Jeffrey drives a Toyota pickup, the height of which ranks him in Class Two. It will now cost him a total of $460 both ways per day to get to his Corporate Area job and back home.(Gleaner July 1, 2013) If Jeffery utilizes the alternative route, Mandela Highway, he could avoid the toll charges but he estimates that it would cost approximately $400 both ways per day in delay, wear and cost, and inflated petrol cost. Assume that Jeffery spends only $11,500 every month on either of these routes. i. How many round trips per month can Jeffery make if he only travels on the Toll Road?(2 marks) ii. How many round trips per month can Jeffery make if he only travels on the Mandela Highway?(2 marks) iii. Jeffery is currently spending his entire income and his marginal utility of using the toll road is 1500 and his marginal utility of using Mandela Highway is 1000. Explain what should he do to maximize his utility?(3 marks) iv. Suppose the toll operators announced a 20% roll back in toll rates for all classes of vehicles travelling on the highway. Construct Jeffery's budget constraint to show how the budget line will change after the new rate was announced.(Ensure that you label the axes and show all intercepts)

Group_6_Presentation [Compatibility Mode] - Word References Mailings Review View Help Nitro Pro Tell me what you want to do 1 3 Jeffrey drives a Toyota pickup, the height of which ranks him in Class Two. It will now cost him a total of $460 both ways per day to get to his Corporate Area job and back home. (Gleaner July 1, 2013) If Jeffery utilizes the alternative route, Mandela Highway, he could avoid the toll charges but he estimates that it would cost approximately $400 both ways per day in delay, wear and cost, and inflated petrol cost. Assume that Jeffery spends only $11,500 every month on either of these routes. i . How many round trips per month can Jeffery make if he only travels on the Toll Road? (2 marks) ii. How many round trips per month can Jeffery make if he only travels on the Mandela Highway? (2 marks) Jeffery is currently spending his entire income and his marginal utility of using the toll road is 1500 and his marginal utility of using Mandela Highway is 1000. Explain what should he do to maximize his utility? marks) iv . Suppose the toll operators announced a 20% roll back in toll rates for all classes of vehicles travelling on the highway. Construct Jeffery's budget constraint to show how the budget line will change after the new rate was announced (Ensure that you label the axes and show all intercepts)