Answer ALL the questions in this section. Choose the most appropriate answer. Write down the letter that represents the correct answer next to each number in your answer booklet. E.g. 26 B QUESTION 1 (4 Marks) 1. "Dairy Group is the leading raw milk buyer in South Africa, passionately committed to creating optimum growth and value for our dairy producer members. We are as passionate about growing the strength of the local dairy industry as we are about the first-class products we send across the continent. By growing a culture of shared interests and opportunities within the local dairy industry, we offer consumers a wide range of nutritional products, at competitive prices". The figure below represents Dairy Group market for full cream milk. People have become more concerned that drinking full cream milk causes them to gain weight, which they do not like. As a result, the a) demand curve will not shift, and the supply curve shifts from S1 to S2. b) demand curve shifts from D1 to D2and the supply curve shifts from S1 to S2. c) demand curve shifts from D2 to D1 and the supply curve shifts from S2 to S1. d) demand curve shifts from D2 to D1 and the supply curve will not shift. QUESTION 2 (4 Marks) 2. Which of the following statements is/are correct? i. An increase in the price of kettles will result in an increase in the supply of kettes. 1 ii. An increase in the price of any of the factors of production will result in a leftward shift of the supply curve. iii. An increase in the wages of workers at Mr Juicy drink factory in Durban will result in a movement along the supply curve of Mr Juicy drinks, ceteris paribus. iv. In their supply decisions, producers take account of the prices of all the altemative products they can produce. a) Only i, ii, iii and iv. b) Only ii and iv. c) Only ii and iii. d) Only i, ii and iv. 3. Which of the following statements about demand curves is TRUE? I. The "Law of Demand" holds if a consumer's marginal benefit is lower at higher quantities consumed than it is at lower quantities consumed. II. If the consumer's marginal benefit is the same no matter what quantity is consumed, then her demand curve will be vertical. III. All else equal, the marginal benefit of consuming a normal good will be higher for richer consumers than for poorer consumers. a) III only. b) I and II only. c) I and III only. d) I only. QUESTION 4 (4 Marks) 4. In the Table 1.1, what is the marginal cost of the third unit