Practice Summary (3) - Chapter 1: Microeconomic Theory - ICSE 12 Economics
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Summary

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Practice Questions

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Question 1 Easy

Define scarcity in your own words.

💡 Hint: Think about why you can't have everything you want.

Question 2 Easy

What effect does a decrease in price have on demand?

💡 Hint: Recall the Law of Demand.

4 more questions available

Interactive Quizzes

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Question 1

What does scarcity imply in economics?

Unlimited resources
Limited resources
Equilibrium

💡 Hint: Think about the resources available to you.

Question 2

True or False: If the price of a product increases, the quantity demanded will always decrease.

True
False

💡 Hint: Recall the fundamental principles of demand.

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Challenge Problems

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Challenge 1 Hard

Suppose the price of a popular smartphone increases significantly. Discuss the expected changes in demand according to elasticity theory.

💡 Hint: What kind of products tend to have elastic versus inelastic demand?

Challenge 2 Hard

Analyze a situation where the government provides a subsidy to encourage the production of electric vehicles. How might this intervention affect market equilibrium?

💡 Hint: How do changes in supply affect price and demand?

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