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ECC1000 - Principles of microeconomics - S2 2025

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What happens to consumer surplus after a price increase?

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If a price decrease from $60 to $40 causes quantity demanded to increase from 6 to 12, what happens to total revenue? 

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Is demand in this market elastic, inelastic, or unit elastic?

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Suppose the government wants to decrease the number of cars that use the Sydney Harbor Bridge by imposing a toll. The toll will be most effective at reducing traffic congestion if the price elasticity of demand for using the bridge is:

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By what percent will it increase/decrease? Enter only the number, with no additional words or symbols.

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Is this good elastic, inelastic, or unit elastic at this price?

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Using this, what can you conclude about widgets and gadgets?

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Suppose that a 5% increase in the price of widgets leads to a 15% decrease in the demand of gadgets. What is the cross price elasticity of demand? 

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Will demand increase or decrease?

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Consider the market for popcorn. Match each of the following events to the appropriate graph.

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