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.
ScanSolve AI Answer
Here are the answers to your questions based on the provided water tariff table: 3.1 Identify the cost per kilolitre for a household that falls into Block 3. Step 1: Locate Block 3 in the table. Block 3 corresponds to a volume of >10 k - 15 k. Step 2: Read the water rate per kilolitre for Block 3. The water rate for Block 3 is R13,08. R13,08 per k 3.2 A household used 14 kilolitres of water during a specific month. Calculate the total cost (Excluding VAT) for using 14 kilolitres of water. Step 1: Calculate the cost for Block 1 (0 - 6 k). Volume in Block 1 = 6 k Rate for Block 1 = Free Cost for Block 1 = 6 k × R0.00/k = R0.00 Step 2: Calculate the cost for Block 2 (>6 k - 10 k). This block covers 4 k (from 6 k to 10 k). Volume in Block 2 = 4 k Rate for Block 2 = R7.20/k Cost for Block 2 = 4 k × R7.20/k = R28.80 Step 3: Calculate the cost for Block 3 (>10 k - 15 k). The total usage is 14 k. After Block 1 (6 k) and Block 2 (4 k), the remaining volume is 14 k - 6 k - 4 k = 4 k. This remaining 4 k falls into Block 3. Volume in Block 3 = 4 k Rate for Block 3 = R13.08/k Cost for Block 3 = 4 k × R13.08/k = R52.32 Step 4: Calculate the total cost (Excluding VAT). Total Cost = Cost for Block 1 + Cost for Block 2 + Cost for Block 3 Total Cost = R0.00 + R28.80 + R52.32 Total Cost = R81.12 R81.12 3.3 The total water bill for another household, including 15% VAT, was R184.00. Calculate the cost of the water before VAT was added. Step 1: Define the relationship between the cost before VAT and the total bill including VAT. Let C be the cost before VAT. VAT is 15%, so the total bill is C + 0.15C = 1.15C. Step 2: Set up the equation with the given total bill. 1.15C = R184.00 Step 3: Solve for C by dividing the total bill by 1.15. C = R184.001.15 C = R160.00 R160.00 What's next?