PART I: Short Answer Theory Questions (5 marks each) 20 M Answer any EQUR out of the following questions White about 3 to 4 sentences a give a specific answer, including examples etc as required 1. Suppose you are working four nights per week at your courses and your gr point average is 2.5. You want a higher grade and decide to study an extra each week. Your GPA now rises to 3.5. What is your marginal benefit from studying for one additional night a week? Explain. 2. Consumers' income declines and, as a result, the demand for margarine increases. Is margarine a normal or an inferior good? Explain. 3. List the factors that change supply and shift the supply curve. Tell what h to supply and the supply curve when there is an increase in the factor me by you. 4. Handbags are a substitute in production for leather jackets. Suppose the handbags falls. How does this fall in price affect the supply and the suppl for leather jackets? 5. When does a shortage occur? 5. What is the difference between the short run and the long run? What is the law of diminishing returns? Why is it called a "law"?