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: 1.1 A tariff system is a pricing structure, often employing a sliding scale, where the cost of goods or services changes based on consumption levels or other factors. It can include fixed, prepaid, or tiered pricing structures for services like municipal utilities or commercial taxes on imported goods. 1.2 Three examples of tariff systems used in daily life are: • Electricity tariffs (e.g., different rates for peak vs. off-peak hours, or tiered rates based on consumption). • Water tariffs (e.g., increasing cost per kilolitre as usage increases, as shown in the table). • Mobile phone data tariffs (e.g., pay-as-you-go rates, or different monthly package prices based on data allowance). 1.3 A customer should compare tariffs before choosing any to ensure they select the most cost-effective option that aligns with their expected usage, thereby saving money and avoiding unexpected high costs. 1.4 A fixed tariff means the price per unit or the total charge remains constant regardless of the amount consumed. A variable tariff means the price per unit or the total charge changes based on the level of consumption or other factors, often increasing with higher usage (a sliding scale). 1.2.1 Step 1: Identify the cost per kilolitre for Block 1 from the table. According to the table, for Block 1 (0-10kl usage), the cost per kilolitre is R 8. The cost of one kilolitre (kl) of water in Block 1 is R 8. 1.2.2 Step 1: Identify the usage range for Block 2 from the table. According to the table, for Block 2, the usage is 11-20 kl. The maximum kilolitres of water in Block 2 is 20 kl. 1.2.3 Step 1: Determine the cost per kilolitre for the first 10 kl. The first 10 kl falls into Block 1, where the cost is R 8 per kl. Step 2: Calculate the total cost for the first 10 kl. Cost = Usage × Cost per kl Cost = 10 kl × R 8/kl Cost = R 80 The total cost of the first 10 kl he used is R 80. Send me the next one 📸