Student Code _________________
Teacher Code _________________
Part 1
a.
The table below shows Wiremu’s utility for coke.
- Complete the table by writing the missing number in the space provided in the shaded boxes
Table 1 – Wiremu’s utility for coke
Quantity
b.
TU (cents)
MU (cents)
0
0
---
1
200
___
2
___
150
3
450
___
4
___
50
Table 2 below shows Wiremu’s demand for coke.
Use table 1 that you completed in question 1 to help you complete Wiremu’s demand schedule for coke
by writing the missing number in the space provided in the shaded boxes
Table 2 - Wiremu’s Demand for Coke
Price ($)
Quantity (units)
3.00
2.00
1.00
c.
___
___
___
On the axes below draw Wiremu’s demand curve coke
- Remember to label your curve with a “d”
Graph 1 - Wiremu’s Demand for Coke
Price ($)
Quantity
(units)
1
d.
Provide a detailed explanation about how marginal utility causes Wiremu’s demand curve for coke to
slope downwards to the right
- refer to specific data From Tables 1 and/or 2 and Graph 1 to support your explanation
.
2
Part 2
a.
The table below shows Wiremu’s marginal utility for sundaes and potato chips.
Table 3 – Wiremu’s marginal utility for sundaes and potato chips
Sundaes
Quantity
Marginal
Utility ($)
1
Potato chips
MUsundaes / Pricesundaes
Before P↑
After P↑
(packets)
Marginal
Utility ($)
120
1
200
2
100
2
160
3
80
3
120
4
60
4
80
5
40
5
40
Quantity
MUchips / Pricechips
- Suppose the price of sundaes rises from 40c to 80c but the price of chips stays at 80c
1st In the column provided calculate the MU/price for both sundaes and chips before the price rise
2nd If Wiremu has up to $3.20 to spend use these results to identify the quantities of sundaes and chip
Wiremu will buy:
Quantity
3rd
Amount spent
- Sundaes _________
_________
- Chips
_________
_________
In the column provided calculate the MU/price for sundaes when the price rises to 80c
4th
If Wiremu still has no more $3.20 to spend use the new results to identify the quantities of sundaes
and chip Wiremu will buy after the price rise:
Quantity
Amount spent
- Sundaes _________
_________
- Chips
_________
_________
5th On the axes below sketch the effect of the increase in price of sundaes (from 40c to 80c) on both
graphs
- your sketch graph doesn’t have to be drawn to scale but SHOULD include price and quantity data
for BOTH sundaes and potato chips to show the impact of the increase price of sundaes
from 40c to 80c
Graph 2 - Wiremu’s Demand for Sundaes
Price (c)
Graph 3 - Wiremu’s Demand for Potato Chips
Price ($)
d
d
Quantity
Quantity
(packets)
3
b.
Justify the effects of a price rise for sundaes on Wiremu by writing detailed explanations about

How it affected the consumption of sundaes
- refer to specific data and the economic models completed on page 3 to support your
explanation

How it affected the consumption of potato chips
- refer to specific data and economic models completed on page 3 to support your explanation
Thank you for giving it your best shot
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