This economics question tests your understanding of economic models and analysis. The step-by-step answer below applies the relevant framework and explains the reasoning.
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1.3.1 Step 1: Use the given exchange rate to convert Rands to US Dollars. Given: 1 = R16.53 Amount in USD = R14\,800R16.53/USD = 895.3417 USD Step 2: Round the amount to two decimal places. Amount in USD ≈ 895.34 USD Sipho's R14 800 is equivalent to: 895.34 USD 1.3.2 Step 1: Use the given exchange rate to convert the laptop price from US Dollars to Rands. Given: 1 = R16.53 Price in ZAR = 820 USD × R16.53/USD = R13\,554.60 The price of the laptop in South African rand is: R13\,554.60 1.3.3 A weak rand means that South African consumers have to pay more Rands to buy the same amount of foreign currency. This makes imported goods, which are priced in foreign currency, more expensive in Rand terms, reducing consumers' purchasing power. 2.1 A tariff is a schedule of rates or charges for services provided by a business, such as call rates for a mobile phone service. 2.2 An advantage of Option A (contract) is that it provides a fixed monthly fee which includes a set number of minutes, making budgeting easier and potentially offering a lower average cost per minute if the included minutes are fully utilized. 2.3 Step 1: Calculate the total monthly cost for Option B for 250 minutes. Option B (Pay-As-You-Go) has a call cost of R2.30 per minute and no monthly fee. Cost for Option B = 250 minutes × R2.30/minute = R575.00 Step 2: Calculate the total monthly cost for Option A for 250 minutes. Option A (Contract) has a fixed monthly fee of R220 and includes 300 minutes. Since 250 minutes is less than 300 minutes, there are no extra call costs. Cost for Option A = R220.00 Step 3: Compare the costs and identify the cheaper option. Cost for Option B = R575.00 Cost for Option A = R220.00 Option A is cheaper. The total monthly cost for Option B is R575.00, and the cheaper option for 250 minutes is: Option A 2.4 Choosing the wrong tariff can significantly affect Lelo's monthly budget by leading to unnecessary expenses. For example, if Lelo chooses a pay-as-you-go option but makes many calls, the per-minute costs can quickly accumulate to be much higher than a contract with included minutes. Conversely, choosing a contract with a high fixed fee but making very few calls means Lelo is paying for services she doesn't use. This can lead to financial strain and less money available for other essential expenses. 3 done, 2 left today. You're making progress.