Smart student of principles of economics

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Muchuu works for a loadsheding firm and gets remunerated a monthly wage of K500.00. He always spends all the K500.00 on buying 5kg of Mealie Meal only which he buys at K100/kg. One day, amidst of Covid 19 pandemic, the price of Mealie Meal increased to K120/kg. Due to the snap change in the price, Muchuu's Supervisor approached him and gave him two (2) options to choose from;

i. Reduce Muchuu's wage to K400.00 and supplying him with 5kg of Mealie Meal at K80/kg monthly.

ii. Increase his wage to K600.00.

As a smart student of Principles of Economics and within a page, kindly advise Muchuu to make a justified rational choice.

2. One Economist by the name of Muchuu opted to swap his car for 15 100kgs of Mealie Meal because he argued that money did not make sense to him such that it did not have any intrinsic value.

Reference no: EM132503098

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