Quelpr
4 marksTheory of Consumer Demand

CAPE Economics Unit 1 · 2015 · Paper 2 · Question 1(c)

With reference to marginal utility theory, justify the shape of Romain's demand curve for chocolate bars.

The mark scheme is shown once you've answered.

Practise this question

Other parts of this question

  1. 1(a)(i)Copy and complete Table 1 to show the total utility and marginal utility derived from consuming 1 to 5 chocolate bars.[5 marks]
  2. 1(a)(ii)a)Define total utility.[2 marks]
  3. 1(a)(ii)b)Define marginal utility.[2 marks]
  4. 1(a)(ii)c)Define the law of diminishing marginal utility.[2 marks]
  5. 1(a)(iii)a)State the point at which Romain begins to lose satisfaction from consuming each additional chocolate bar.[1 mark]
  6. 1(a)(iii)b)State the point at which Romain maximizes his satisfaction from consuming chocolate bars.[1 mark]
  7. 1(b)(i)Define the term 'consumer surplus'.[2 marks]
  8. 1(b)(ii)Draw Romain's demand curve.[4 marks]
  9. 1(b)(iii)On the demand curve drawn in (b)(ii), shade and label the total consumer surplus.[2 marks]

More practice: the rest of this paper · more Theory of Consumer Demand questions · all CAPE Economics Unit 1 past papers