BM1709

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TASK PERFORMANCE

I. PROBLEM SOLVING. For each of the given situations, determine the combination of goods that will
allow the consumer to maximize his utility, the costs of each combination, and the corresponding
budget lines. Write your answers on another sheet of paper. (65 points)

Marvin is a utility maximizer. After his living expenses, his income is P2,000, which he can use to buy
a new book or movie tickets. A new book costs P250, while movie tickets costs P150.

 Situation 1: Marvin chooses to spend his budget on two (2) goods, new books, and movie
tickets. Assuming that he DOES NOT to want to spend all his budget on only one (1) good, give
two (2) combinations of goods that he can choose from. (25 points)
o Combinations and costs (5 points)
o Budget lines (2 lines x 10 points)

 Situation 2: Marvin notices that the prices of movie tickets drop to P125. Prices of new books
and budget remain the same. Give two (2) possible combinations of goods, assuming that he
prefers to buy more new books than movie tickets. (25 points)
o Combinations and costs (5 points)
o Budget lines (2 lines x 10 points)

 Situation 3: His budget becomes P1,200. Prices of goods are the same in Situation 1. Give the
combination of goods that he can still buy with his reduced budget. (15 points)
o Combinations and costs (5 points)
o Budget line (1 line x 10 points)

Rubric: Budget Lines

CRITERIA PERFORMANCE INDICATORS POINTS
Design The illustration is correctly presented and 6
organized.
Labels All components are labeled accordingly. 4
TOTAL 10

Rubric: Combinations and Costs

CRITERIA PERFORMANCE INDICATORS POINTS
Provided pieces of evidence and supporting
Content 3
details
Organization Expressed the points in clear and logical
2
of ideas arrangement of ideas
TOTAL 5

04 Task Performance *Property of STI

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