EDEXCEL IAL Topical Past Paper Unit 3

1.2.2 The demand curve




section A

WEC13/01/May 2024

Many hotels offer an all‐you‐can‐eat breakfast buffet. 80% of hotel guests go to the breakfast buffet three times for food but only 10% visit five times.

With reference to hotel breakfasts, explain why the above information illustrates ‘diminishing marginal utility’. [4 marks]

Section C