Sipho's Income is R120 a week. The price of popcorn rises from R30 to R60 a bag. and the price of a smoothie is unchanged at R30. (Use the information to answer 1.1 and 1.2)

1.1 Illustrate using the graph a change in consumer equilibrium using the indefference approach (measure smoothies on y-axis and popcorn on the x-axis) what is the effect of the rise in the price of popcorn on Sipho's real Income in terms of smoothies and his real income in terms of popcorn? (6)

1.2 Derive the demand for popcorn. (3)

1.3 "Under perfect competition, all market participants are price takers. " Explain the statement. (6)

1.4 Explain with an aid of a diagram why a film profit is maximized(loss minimized) where marginal cost is equal to marginal revenue. (5)