A great proportion of the candidates who attempted this question scored 10\\ marks. ['viost A them could not draw the appropriate demand curve as required in the (b) part 01 the question. Also, some candidates misplaced the explanation of the law of diminishing marginal utility as required in the (c) part of the question with the law of diminishing marginal returns. In order to score good marks, candidates were expected to present their answers as follow:

1. (b) To draw the demand curve there must be information 011 both quantities and prices. In
equilibrium MU= P, therefore the marginal utility COIUIllIl rcprescru-, prices

(c)    According to the law, marginal utility falls when quantity consumed increases  

  In equilibrium MU= P. therefore, for MU to Call, price must Call to encourage the consumer to consume more. In other words. it is as price falls that quantity demanded increases as shown in the demand curve