_'-vv. - ' nun-"It" Question 33): Marginal Analysis 0 2 l 6 I Conmmption Units Q33). Refer to the above diagram. Given the above Marginal Benefit and Marginal Cost for the consumption of red wine. What would be the number of glasses of red wine that could bring in the highest utility (satisfaction)? Ans Q 33): (2 marks): The number of glasses of red wine is = [ ] Question 3b) (9 marks) Q 3b i). If the price of fillet steak rises from $50 per kg to $60 per kg, how this would affect the Demand, Supply, quantity demanded or quantity supply of fillet steak? I Ans Q 3 hi): (2 marks or 0 mark): Demand, Supply, quantity demanded 9; quantity supplied I The quantity demanded (Qd) for fillet steak increases from 500 kg to 550 kg per week when the price of llet steak falls from $55 to $50 per kg. Q 3b ii). Calculate the price elasticity of demand (PED) for fillet steak. l Ans Q3 bii): (3 marks) PED = Q 3b iii). Calculate the total revenue (TR) when the price of steak is $55 per kg? Ans Q 3 biii): (2 marks) TR = Q 3b iv). If the suppliers raise the price of fillet steak, what will happen to their total revenue? Explain. Ans Q3 biv): (1 marks) TR will: = Explanation: (1 marks): Question 3c) (4 marks) If the price of prawns increases by 15%, the quantity demand for llet steak falls by 40%, while the quantity demand of prawns reduces by 10%. Q 3 ci). Calculate the cross-elasticity of demand (CED) between prawns and llet steak. Ans: Q3 ci) (3 marks): CED = [ l