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 solutions to the questions: QUESTION 2: ELECTRICITY TARIFFS 1. To show the cost for 45kWh of electricity: 45 kWh falls into the 0-50 kWh block, which costs R0.7986 per kWh. Cost = 45 kWh × R0.7986/kWh = R35.937 Rounded to two decimal places, the cost is R35.94. 2. To calculate the cost for 240kWh of electricity for Marisel: Step 1: Cost for the first 50 kWh. 50 kWh × R0.7986/kWh = R39.93 Step 2: Cost for the remaining 190 kWh (240 kWh - 50 kWh). This falls into the 51-350 kWh block. 190 kWh × R1.0755/kWh = R204.345 Total cost: R39.93 + R204.345 = R244.275 Rounded to two decimal places, the total cost is R244.28. 3. To calculate the cost for 360 kWh of electricity: Step 1: Cost for the first 50 kWh. 50 kWh × R0.7986/kWh = R39.93 Step 2: Cost for the next 300 kWh (from 51 kWh to 350 kWh). This falls into the 51-350 kWh block. 300 kWh × R1.0755/kWh = R322.65 Step 3: Cost for the remaining 10 kWh (360 kWh - 350 kWh). This falls into the 351-600 kWh block. 10 kWh × R1.4356/kWh = R14.356 Total cost: R39.93 + R322.65 + R14.356 = R376.936 Rounded to two decimal places, the total cost is R376.94. 4. Some municipalities provide free basic water because water is considered a fundamental human right essential for survival, health, and sanitation. Electricity, while important, is generally not considered as critical for basic survival as water, and providing free electricity could be financially unsustainable or lead to excessive consumption. TELEPHONE TARIFFS 1. The telephone cost is R199 even for zero minutes of calls because this amount represents the monthly rental fee for the landline service, which is a fixed charge regardless of usage. 2. To calculate the values of A and B: The total cost is the monthly rental (R199) plus R0.75 per minute of calls. Value of A (for 4 minutes): A = R199 + (4 minutes × R0.75/minute) A = R199 + R3.00 A = R202.00 Value of B (when cost is R206.50): R206.50 = R199 + (B minutes × R0.75/minute) R206.50 - R199 = B × R0.75 R7.50 = B × R0.75 B = R7.50R0.75 B = 10 That's 2 down. 3 left today — send the next one.