Micro Unit 2- Practice Questions #2

This video tutorial covers various microeconomic concepts, focusing on elasticity, demand, and supply. It explains the law of demand, types of elasticity, and the impact of price changes on total revenue. The tutorial also delves into welfare economics, consumer surplus, and the effects of taxes on market equilibrium. Additionally, it discusses consumer choice and utility, providing examples and practice questions to reinforce understanding.

What does elasticity measure in microeconomics?

Explain the law of demand as discussed in the video.

What happens to total revenue when the price decreases and quantity demanded increases?

Define the concept of unit elasticity.

What are the four types of elasticity mentioned in the video?

What is the relationship between the price of product Y and the demand for product X?

How does perfectly inelastic supply affect market equilibrium?

What is consumer surplus and how is it affected by price changes?

Describe the impact of a tax on consumer surplus and producer surplus.

Explain the concept of diminishing marginal utility as discussed in the context of pizza consumption.