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
Welcome back Refilwe🥹🥹🥹 — been a while! Let's pick up where you left off. 2.1 A tariff, in this context, refers to the rate or charge applied per unit of water consumed by households, often structured in blocks based on consumption levels. 2.2 • To ensure that all citizens have access to a basic amount of water for essential needs like drinking, cooking, and hygiene, promoting public health. • To provide financial relief to low-income households, making essential services more affordable and reducing the burden of living costs. 2.3 Step 1: Identify the VAT inclusive tariff for the specified consumption range in Polokwane. From Table 1, for consumption >20 kl - 35 kl, the tariff is R13.66 per kl (VAT Inclusive). Step 2: Calculate the tariff excluding VAT. VAT is 15%. To exclude VAT, divide the VAT inclusive price by (1 + VAT rate). Tariff excluding VAT = R13.661 + 0.15 Tariff excluding VAT = R13.661.15 Tariff excluding VAT = R11.87826... Rounding to two decimal places: Tariff excluding VAT = R11.88/kl 2.4 Step 1: Calculate the total cost (VAT exclusive) for 62 kl in Maruleng Municipality using Table 2. • First 6 kl: 6 kl × R0.00/kl = R0.00 • Next 24 kl (from >6 kl to <30 kl): 24 kl × R4.10/kl = R98.40 • Next 30 kl (from 30 kl to <60 kl): 30 kl × R10.15/kl = R304.50 • Remaining 2 kl (from 60 kl to 62 kl): 2 kl × R18.58/kl = R37.16 • Additional charge for using more than 60 kl: R90.80 Step 2: Sum the costs to get the total VAT exclusive amount. Total VAT exclusive cost = R0.00 + R98.40 + R304.50 + R37.16 + R90.80 Total VAT exclusive cost = R530.86 Step 3: Add VAT (15%) to the total VAT exclusive cost. Total VAT inclusive cost = R530.86 × (1 + 0.15) Total VAT inclusive cost = R530.86 × 1.15 Total VAT inclusive cost = R610.489 Rounding to two decimal places: Total VAT inclusive cost = R610.49 Step 4: Compare the calculated amount with the amount Dr. Khosa paid. Dr. Khosa paid R619.92. The calculated correct amount is R610.49. Since R619.92 ≠ R610.49, the municipality did not charge him correctly. The municipality charged Dr. Khosa incorrectly. Send me the next one 📸