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a) Complete the missing figures D, E, F, G and H. 1. The table below represents a traveler’s consumption of bottles of Pepsi. Study the table carefully and answer the questions that follow. (b) Draw the demand curve for the traveler’s consumption of Coca-Cola. (The use of a graph sheet is essential). (C) Explain the law of diminishing marginal utility as the basis for the slope of the traveler’s demand curve. ANS: (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. 2. (a) State and explain the law of comparative cost advantage. (b) Give two limitations of the law as a theory of international trade. ANS: (a) (b) Some limitations of the law are: – It assumes that there are no transport costs. – It assumes free mobility of factors of production. – It