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ECS1501 ASSESMENT 8 2024 SEMESTER 2 Suppose a toffee cost R0,50, a lollipop cost R1,50 and a sugar stick cost R1,00. Thabang has R6,00 available to spend on sweets. He will be in equilibrium if he buys Answer 5 toffees, Answer 1 lollipop and Answer 2 sR50,00
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ECS1501 ASSESMENT 8 2024 SEMESTER 2 Suppose a toffee cost R0,50, a lollipop cost R1,50 and a sugar stick cost R1,00. Thabang has R6,00 available to spend on sweets. He will be in equilibrium if he buys Answer 5 toffees, Answer 1 lollipop and Answer 2 s
ECS1501 ASSESMENT 8 2024 SEMESTER 2
Suppose a toffee cost R0,50, a lollipop cost R1,50 and a sugar stick cost R1,00. Thabang has R6,00 available to spend on sweets. He will be in equilibrium if he buys Answer 5 toffees, Answer 1 lollipop and Answer
2 sugar sticks.
Based on the following in...
Started on Sunday, 1 September
2024, 6:03 AM
State Finished
Completed on Sunday, 1 September
2024, 7:38 AM
Time taken 1 hour 34 mins
Marks 11.00/11.00
Grade 100.00 out of 100.00
Question 1
Complete
Not graded
I confirm
that this assessment will be my own
individual work;
that I will not communicate with anyone
else in any way during the completion of
this assessment;
that I will not cheat in any way in
completing and submitting this
assessment.
I confirm.
I do not confirm.
,ECS1501-24-Y Assessments Assessment 8
QUIZ
Question 2
Complete
Mark 1.00 out of 1.00
A utility-maximising consumer will
choose to purchase another unit of a
good if
the good has the highest weighted
marginal utility.
the marginal utility of the good is
falling.
the good has the lowest weighted
marginal utility.
the opportunity cost of consuming
the good is constant.
Would you agree with the statement that
the average, normal man/woman in the
street just wants the best or maximum
value for their money? And he or she will
shop around until they are satisfied that
they have found that product at the
“right” price. If you are a rational
consumer, you will agree with the
statement, and if you do, the jump to “a
utility-maximising consumer will choose
to purchase another unit of a good if the
good has the highest weighted marginal
utility” is not that big. The highest
weighted marginal utility, that is the
marginal utility divided by the price, is
indeed where the consumer gets the
maximum value for his or her money.
, Question 3
Complete
Mark 1.00 out of 1.00
Suppose Lerato is purchasing Coke and
pretzels in quantities such that she is
achieving consumer equilibrium. Then
the price of Coke decreases. Lerato will
likely ______ her consumption of Coke
and the marginal utility of Coke will
______ while the total utility from Coke
will _____.
increase; decrease; increase
increase; decrease; decrease
increase; increase; increase
decrease; decrease; decrease
Lerato is in equilibrium when the
weighted marginal utilities are the same
for both goods. For example:
Let’s assume the following values for
Coke and pretzels respectively:
Coke Pretzels
Marginal utility of 80 60
last unit consumed
Price R20 R16
Lerato is in equilibrium as
If the price of Coke decreases to R16,
equilibrium is disturbed as
To get back to equilibrium, Lerato will
have to consume more Coke. Remember,
if consumption increases, marginal utility
decreases. In our example, the marginal
utility needs to decrease to 64:
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