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By SECTION A QUESTIONS 2.9 What law is illustrated by the column for marginal utility and the mar- ginal utility curve drawn in Question 2.2?
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SECTION A QUESTIONS 2.9 What law is illustrated by the column for marginal utility and the mar- ginal utility curve drawn in Question 2.2? Question 3 Patience loves eating out and wearing designer brands. The following table shows the utility that she derives from meals at La Perla and buying shoes at Lacoste. A meal costs R150 and a pair of shoes costs R300. Eating out Designer shoes TU MU MU/P TU MU Units MU/P 0 0 O 1 180 600 s' 2 270 960 3 330 1 050 4 375 1 080 3.1 Complete the table above. D 3.2 Patience has R1050 per month to spend on these two items. Explain in what order she will place the two items in her 'shopping basket' until she has expended all her money. D Question 4 The table on the next page represents Leonard Santana's marginal utilities and total utilities from the consumption of Steers burgers and cola. The price per burger is R12 and a can of cola costs R6. Leonard has R60 to spend on fast food each week. Complete the table and answer the questions. 4.1 Complete the table on the next page. 4.2 At which combination of burgers and cola will Leonard be in equilibria 44 um if he spends his total income of R60 per week? Von Schalk Publishers 4.3 Explain why Leonard is not in equilibrium at five hamburgers and five cans of cola, where total utility is at a maximumStep by Step Solution
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