(a)[4]
(i) Briefly explain how marginal utility theory can be used to show a rational consumer’s equilibrium.
- Briefly explain how marginal utility theory can be used to show when a rational consumer’s equilibrium is reached. [4]
(a(ii))[4]
(ii) Use the article to consider whether people who buy bottled water are behaving rationally and maximising their satisfaction.
- Use the article to consider whether people who buy bottled water are behaving rationally and whether they are maximising their satisfaction. [4]
(b)[5]
Analyse what effects restricting bottled water sales could have on the UK economy.
(c)[7]
Discuss whether the information supplied is factual enough and complete enough to justify government regulation of the bottled water industry.